|Unit 4.3-International Regulations|
World Trade Organization
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.
The WTO can be involved in dispute settlements that may result from untimely payments. The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore ensuring that trade flows smoothly.
A dispute arises when a member government believes another member government is violating an agreement or a commitment that it has made in the WTO. The authors of these agreements are the member governments themselves; the agreements are the outcome of negotiations among members.
Ultimate responsibility for settling disputes also lies with member governments, through the Dispute Settlement Body.