The WTO And Gatt Essay Example

The WTO stands for World Trade Organization and GATT is the acronym for the General Agreement on Tariffs and Trade. GATT was created to be an agreement to help regulate global trading between international markets. It was in place until the early 1990s and a few years later, the World Trade Organization took its place. The WTO was actually designed as a more permanent structure in comparison to the General Agreement on Tariffs and Trade. The purpose of the WTO was basically to help supervise and encourage the trade between global and international businesses.
Under the WTO, goods, services, and even property rights of the intellectual form are traded and monitored. This helps for the international countries to maintain peace and to also try to avoid any disagreements about foreign trade across international borders. If there are business subjects which need to be discussed, the WTO helps to maintain rules and regulations throughout the world. When speaking on terms of globalization in relation to business, the United Nations organization and the WTO are the most regulatory and reliable governing boards which help to regulate international business. Under GATT, this organization was created shortly after World War II. The goal was to eliminate any trade barriers and reduce tariff taxes that other international businesses would try to imply. Unfortunately, there were too many disputes among GATT members, the regulations were set to be temporary, and the structure did not allow for enough enforcement so it ultimately disbanded.
Without these organizations, international trade could wreak havoc. Trade and tariffs could be in place. Additionally, it would be impossible to know what was going across the borders. Global business would not likely be as friendly. The ultimate goal of these organizations is to try to treat each country without any preferences. Any country has the ability to buy and sell to other companies as long as these organizations abide by WTO, or in previous years, GATT. Otherwise, there likely would not be much global peace and the taxes and tariffs would be in place. It is quite possible that it could lead to another war if countries were unable to agree.