The United States is a member of the World Trade Organization (WTO) and the Marrakesh Agreement establishing the World Trade Organization (WTO) contains rules for trade among the 154 members of the WTO. The United States and other WTO members are currently participating in the WTO negotiations on development in Doha and a strong and open Doha agreement on both goods and services would go a long way in managing the global economic crisis and restoring the role of trade in promoting economic growth and development. A definite prognosis is that international trade agreements will continue to be controversial. Before you begin your reading on the World Trade Organization (WTO), take a few minutes to watch the following video, which will give you a background on the General Agreement on Tariffs and Trade (GATT), and explain how it became the WTO we know today. Remember, the world is much smaller today than it was when your parents and grandparents were growing up, and international trade has not always been the norm. After watching the video, think about the impossibility of world trade without any kind of agreement between nations. In recent years, the WTO has also made it a priority to help developing countries, which are covered by the WTO regulation. Many developing and emerging countries lack the technical experience and know-how to manage large and comprehensive trade agreements. The WTO provides them with critical training and support, ensuring that the WTO is comprehensive and fair to both the richest countries and the world`s poorest countries. However, these advantages must be offset by a disadvantage: by excluding some countries, these agreements can transfer the composition of trade from low-cost countries that are not parties to the agreement to high-cost countries that are. There are pros and cons of trade agreements. By removing tariffs, they reduce import prices and consumers benefit from them. However, some domestic industries are suffering.
They cannot compete with countries with lower standards of living. This allows them to leave the store and make their employees suffer. Trade agreements often require a trade-off between businesses and consumers. The failure of Doha has enabled China to reach a global level of trade. It has signed bilateral trade agreements with dozens of countries in Africa, Asia and Latin America. Chinese companies have the right to develop the country`s oil and other raw materials.