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Running head: ANALYSIS OF THE WORLD TRADE ORGANIZATION 1

An Analysis of the World Trade Organization (WTO)

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ANALYSIS OF THE WORLD TRADE ORGANIZATION 2

An Analysis of the World Trade Organization (WTO)

The WTO is an organization with an objective of providing economic research with the

aim of facilitating an understanding of the trends in trade, the multilateral trading system, and

trade policy issues. The organization usually collects an annual publication that includes trade

statistical reviews and the world trade reports. Additionally, it organizes trade seminars with

other international business partners and academic experts through co-publications, conferences,

courses, and other trade events. For these reasons, the WTO promotes and monitors trade

operations around the world. However, given the broader region it operates within, it differs

from other organizations such as the Asian Development Bank, Latin American Development

Bank, African Development Bank, and European Bank, the operations of which only cover

specific areas.

The World Trade Oranization (WTO) enjoys the monopoly of controlling the rules and

regulation of trade between the nations. Its function enables a bulk of trading nation to negotiate

and signed agreements approved in their parliaments. The objective is to ensure that the trade

flows smoothly in member states and avoiding losses which may occur.The result is assurance.

Customers and manufacturers are assured with secure supplies and of the finished goods, raw

materials, components, and services that they use. Furthermore the manufacturers and the

exporters understand that the international markets remain open to them which results to

prosperous economic world. .One of the important feature of the organization is that members

join the organization if they have a full autonomy in conducting its trade policies. The process is

done through negotiation of the existing member state of WTO.

ANALYSIS OF THE WORLD TRADE ORGANIZATION 3

There are many roles that WTO performs in reconstructing and developing nations’

welfare; one of them is to cooperate with the international banks and the International Monetary

Fund for reconstruction and development purposes so as to achieve a mutual goal in global

economic policymaking. The aim is to build a better understanding and coordinate with

organizations carrying out trade. An example is the coordination of the WTO and financial

institutions such as the World Bank and IMF that improve the living standards of people in

different parts of the world. Another role of the organization is providing forums that ease the

negotiation process among its member states concerning the agreements that carry out a

multilateral trade. The conference is essential since it gives every representative a chance to

advise on various challenges affecting multilateral trade. The organization further facilitates the

implementation administration and achievement of the goals of the multilateral and plurality

trade agreement (Brown, 2015).

Unlike WTO, which operates worldwide, trade organizations such as Latin American

Development Bank, European Bank, African Development Bank, and Asian Development Bank

operate in specific regions. The function of the Development Bank of Latin America is to

provide loans and technical support for economic development, financial assistance, and equity

investments. The organization’s strategic interests include bio-commerce; waste management;

energy conservation and development; forest conservation and management; water and

sanitation; climate adaptation and mitigation; and integration of environmental concerns in Latin

America’s financial institutions. The organization also grants programs for farmers, applied

research environment, energy, natural resources, and capacity building. Additionally, the bank of

Latin America sponsors scholars training in various learning institutions, workshops and

ANALYSIS OF THE WORLD TRADE ORGANIZATION 4

conferences, and other knowledge-related activities that promote the development of Latin

America (Chapman & Canada, 2012).

Another trade organization is the European Bank, a more substantial investor in the

region of Europe. Due to its financial stability, the organization is in a position to mobilize

foreign investors for trade purposes. About sixty nations, including two intergovernmental

bodies, the European Commission and the EIB, hold stakes in it. Although it has invested in

public sectors, the higher percentage of the shares goes to private organizations, together with the

commercial institution. Furthermore, it provides monetary assistance to banks and the trade

industry, both new businesses and existing ones. The organization works towards reforming the

state-owned firms supporting their privatization and improving municipal service within Europe

states. Moreover, the bank relies on the government's institution in the region to help in

implementing the policies that will promote the transition towards equity in the distribution of

resources (Pohl & Sorsa, 2017).

The African Development Bank is also a thriving organization that deals with trade in

Africa. The firm found in 1964 has a primary objective of promoting economic and social

development in Africa. Its official headquarters is in Abidjan, Ivory Coast, but as a consequence

of the political situation, the regional development bank has been relocated in Tunisia since 2003

to 2014. The ADB only consisted of African countries in the beginning, but since 1982 it has

also included non-African nations. Today, ADB is owned by seventy-seven member states, of

which Sweden is one of twenty-four non-African countries. The objective for AfDB is to become

Africa's leading development financier, and they are funding projects in most sectors, such as

infrastructure, telecommunications, agriculture, environment and climate changes, health care, as

well as education (Alemayehu, 2013).

ANALYSIS OF THE WORLD TRADE ORGANIZATION 5

The Asian Development Bank is another business corporation that plays a vital role in

fostering economic development and co-operation in states situated in Asia and the Pacific. Its

primary goal is to accelerate economic growth to developing countries within the region.

Additionally, it aims to encourage economic and financial cooperation among the regional

members. Members enjoy the right to construct projects supported by bank loans (Robertson,

2010).

Though both WTO and other organization trades such as Latin American Development

Bank, European Bank, African Development Bank, and Asian Development Bank perform the

same roles, the regions of operation differ. The WTO operates globally while the other trade

organizations operate in specific areas which include Africa, Asia, Europe, and Latin America.

Furthermore, the organizations have a mutual goal of reconstruction and development through

the support of various projects in the regions they operate.

ANALYSIS OF THE WORLD TRADE ORGANIZATION 6

Reference

Alemayehu, G. F. (2013). Finance and trade in Africa: Macroeconomic response in the world

economic context. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.

Brown, C. P. (2015). Self-enforcing trade: Developing countries and WTO dispute settlement.

Washington, D. C: Brookings Institution Press.

Chapman, A., & Canada. (2011). Free trade in Latin America and the Caribbean. Ottawa:

Library of Parliament, Research Branch.

Pohl, G., & Sorsa, P. (2017). European integration and trade with the developing world.

Washington, D. C: World Bank.

Robertson, D. (2010). East Asian trade after the Uruguay Round. Cambridge: Cambridge

University Press.

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