World Trade Organization

The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It does this by:

s administering trade agreements

s acting as a forum for trade negotiations

s settling trade disputes

s reviewing national trade policies

s assisting developing countries in trade policy issues through technical assistance and training programmes

s reducing protectionism

s cooperating with other international organizations

At the heart of the system are the WTO’s agreements, negotiated and signed by a large majority of the world’s trading nations. These agreements are the legal ground rules for international commerce. Essentially, they are contracts, guaranteeing member countries important trade rights. They also bind governments to keep their trade policies within agreed limits to everybody’s benefit. Their main purpose is to help producers of goods and services, exporters and importers conduct their business.

The WTO is one of three major organizations that oversee international economic relations among governments. The other two are the International Monetary Fund, which works to improve payment arrangements and other financial dealings between countries, and the World Bank, which provides loans to poorer nations. The WTO headquarters are in Geneva, Switzerland.

Exercises in Word Study

Ex.1. Form verbs from the following nouns:

administrator, negotiation, settlement, assistance, training, cooperation, agreement, improvement, arrangement, dealings.