Negotiation rounds that lead to agreements by consensus are particularly important. Also of importance for the WTO trading system is a focus on abiding by the rules by all its member countries. The latter is easier said than done and that is why the WTO's dispute settlement process focuses on interpreting agreements and commitments and how to ensure that countries trade policies conform to them. Thereby reducing the risk of disputes spilling over into political or military conflict. .
By promoting free trade among nations, the WTO has been effective in removing trade barriers that had long restricted international trade. By lifting this veil, countries have realized the international gains of specializing in those activities in which it possesses a comparative advantage. Free trade has also offered firms a greater incentive to innovate and to engage in efficient production. .
We as consumers are the beneficiaries of free trade fostered by the WTO. Supporters of the WTO argue that free trade cuts the cost of living. As we take a look at the WTO's global system, it lowers trade barriers through negotiations and applies the principle of non-discrimination. This places everyone on an equal playing field or at least reduces some of the inequalities of lesser-developed countries. In essence, it gives the smaller countries more voice and some increased bargaining power. Therefore, by applying the WTO's principle of non-discrimination, costs of production will be reduced because the use of imports used in production is cheaper. This will lead to a reduction in the price of finished goods and services and ultimately a lower cost of living. .
Good paying American jobs, higher living standards, and the continued growth of the U.S. economy depend on its ability to sell the goods and services it produces to consumers everywhere. Supporters argue that the WTO has helped the U.S. achieve this goal. The WTO allows American businesses, farmers, and working people to find new opportunities, create new jobs, and raise family living standards.
