The WTO, or World Trade Organization, is the only international, global organization that deals with trade rules between nations. WTO agreements, which have been negotiated, signed, and ratified by most of the trading nations in the world, form the foundation of the organization. The primary goal of the WTO is to help exporters, importers, and producers of products and services to conduct business.
Located in Geneva, Switzerland, and established in January 1995, the WTO currently has 153 member countries. For 2011, it has a budget of 196 million Swiss francs. Pascal Lamy currently serves as the Director-General of the WTO, heading the organization for a second term through August 2013. Mr. Lamy is a businessperson, French political advisor, and the former European Commissioner for Trade. He also serves as the Honorary President for Notre Europe, a Paris think tank.
Functions of the WTO include administering its trade agreements and serving as a forum for trade negotiations. The organization also monitors national trade policies and handles disputes regarding trade. Developing countries turn to the WTO for technical support and training when they enter the international trade arena. WTO cooperation with other international organizations contributes to mutual goal attainment.
WTO negotiations have open markets by helping countries lower trade barriers. They have also helped maintain these barriers to prevent spreading of disease or to protect consumers. WTO agreements feature the legal ground rules regarding international commerce. They enable producers, importers, and exporters to conduct business without jeopardizing the environmental and social objectives of governments.
When WTO member governments experience trade issues, they turn to their organization to resolve these through negotiation. By helping trade to flow as freely as possible without undesired ramifications, economic health and development are encouraged. People, businesses, and governments become aware of international trade rules and feel confident that these will not suddenly change.