The World Trade Organization is an international organization that regulates trade between countries.
It officially started on 1 January 1995.
Its main goal is simple:
To make global trade smooth, predictable, and fair.
Today, the World Trade Organization covers about 98% of global trade.
Before the World Trade Organization, there was General Agreement on Tariffs and Trade (GATT).
After World War II, countries wanted economic stability.
So in 1947, GATT was created to reduce tariffs.
But GATT had limitations:
Between 1986 and 1994, countries negotiated during the Uruguay Round.
The result was the creation of the World Trade Organization in 1995.Unlike GATT, the WTO:
Today, the World Trade Organization has 166 member countries.
The World Trade Organization works to:
The World Trade Organization is based on five main principles:
If a country gives a trade benefit to one member, it must give it to all.
Imported goods must be treated the same as domestic goods.
Countries must publish trade rules clearly.
Subsidies and dumping must be controlled.
Developing countries get flexibility and support.
The WTO is member-driven. Decisions are made by member countries.
| Body | Role |
|---|---|
| Ministerial Conference | Highest decision-making body |
| General Council | Handles daily operations |
| Dispute Settlement Body | Resolves trade conflicts |
| Secretariat | Administrative support |
Headquarters: Geneva, Switzerland
The World Trade Organization manages several agreements.
| Agreement | Covers |
|---|---|
| GATT | Trade in goods |
| GATS | Trade in services |
| TRIPS | Intellectual property rights |
| Agreement on Agriculture | Farming trade rules |
| Trade Facilitation Agreement | Customs reforms |
One of the strongest features of the World Trade Organization is its dispute settlement system.
When countries disagree:
The United States accused the European Union of subsidizing Airbus unfairly.
The EU accused the US of supporting Boeing.The WTO investigated both sides.
Result:
This case shows the WTO ensures fairness, even among powerful economies.
The US imposed tariffs on steel imports.
India challenged this in the WTO.
The dispute panel reviewed whether tariffs followed WTO rules.
This case highlighted:
Brazil complained that US cotton subsidies hurt Brazilian farmers.
The WTO ruled in favor of Brazil.
The US later compensated Brazil and modified policies.
This shows small and developing countries can win against big economies.
The WTO is important. But it faces problems.
Some appointments were blocked.
This slowed down the dispute system.
US-China tensions created pressure on WTO rules.
Multilateral talks take years.
E-commerce and AI need updated rules.
Now let’s connect the World Trade Organization with Pakistan.
Yes.
Pakistan joined the WTO in 1995.
The World Trade Organization benefits Pakistan in many ways:
Pakistan relies heavily on exports like:
WTO rules help Pakistan compete fairly.
The World Trade Organization provides:
This helps countries like Pakistan integrate into the global economy.
Since 1995:
The WTO provides predictability.
Businesses prefer stable trade rules.
The world economy is changing.
The WTO must adapt to:
Reform discussions are ongoing. The future depends on cooperation among major economies.
| Question | Answer |
|---|---|
| Established | 1995 |
| Headquarters | Geneva, Switzerland |
| Members | 166 countries |
| Coverage | 98% of global trade |
| Predecessor | GATT (1947) |
The World Trade Organization is not perfect.
But it is essential.
Without the WTO:
For Pakistan and other developing nations, the WTO offers stability and opportunity.
The world needs stronger cooperation.
The WTO remains the foundation of global trade governance.
The World Trade Organization is a global body that regulates trade between countries. Its purpose is to make trade smooth, predictable, and fair.
The headquarters of the WTO is located in Geneva, Switzerland.
Yes. Pakistan has been a member of the World Trade Organization since 1995.
The WTO was created after the Uruguay Round negotiations and officially started in 1995. It replaced GATT.
The WTO was established in 1995. As of 2026, it is 31 years old.
There are currently 166 member countries in the World Trade Organization.
Notable Readings :
US-CHINA TRADE WAR click here
US INTERESTS IN THE MIDDLE EAST click here