Which organization is primarily responsible for promoting free trade among nations?

The correct answer is World Trade Organization (WTO).

Key Points

• The World Trade Organization (WTO) was established on 1 January 1995 and is headquartered in Geneva, Switzerland.
• WTO is the only international organization that deals with the global rules of trade between nations to ensure free and fair trade.
• The primary role of WTO is to oversee trade agreements, resolve disputes, and promote non-discriminatory trade practices among its member countries.
• It has 164 member nations as of 2023, representing over 98% of global trade.
• The WTO's main agreements include the General Agreement on Tariffs and Trade (GATT), Trade-Related Aspects of Intellectual Property Rights (TRIPS), and General Agreement on Trade in Services (GATS).

Additional Information

• General Agreement on Tariffs and Trade (GATT)
  • GATT was established in 1947 and later became part of the WTO framework.
  • Its primary aim is to reduce tariffs and other trade barriers to promote international trade.
  • GATT facilitated trade negotiations and provided dispute resolution mechanisms between countries.
• Trade-Related Aspects of Intellectual Property Rights (TRIPS)
  • TRIPS is an agreement under WTO that sets minimum standards for intellectual property protection globally.
  • It covers areas such as patents, trademarks, copyrights, and trade secrets.
  • TRIPS ensures that intellectual property rights do not become barriers to trade.
• General Agreement on Trade in Services (GATS)
  • GATS is the first multilateral agreement to regulate trade in services under the WTO framework.
  • It promotes transparency and encourages fair competition in international trade in services.
  • Key sectors under GATS include finance, telecommunications, tourism, and transportation services.
• Dispute Settlement Mechanism of WTO
  • The WTO provides a structured process for resolving trade disputes among member countries.
  • It includes consultations, panels, and appellate review to ensure compliance with trade agreements.
  • Its dispute resolution system is considered one of the most effective mechanisms globally for trade-related conflicts.