| The World Trade Organization or WTO was formed | | | | developed countries at lower tariffs. At the same |
| in the year 1995. The main goal of WTO is to help | | | | time, developing countries are also lessening tariffs in |
| the trading industry to become smooth, fair, free and | | | | their import market. By doing this practice, developing |
| predictable. It was organized to become the | | | | countries are using the chance to develop their |
| administrator of multilateral trade and business | | | | corporations and industries into more mature and |
| agreements between its member nations. It supports | | | | sophisticated kind until they become competitive to |
| all occurring negotiations for latest agreements for | | | | the market of developed countries. |
| trade. WTO also tries to resolve trade disputes | | | | Four Steps to Become a WTO Member |
| between member nations. | | | | 1. The interested country should submit an application |
| Multi-lateral agreements are always made between | | | | to become a member. A committee of any member |
| several countries in the past. Because of this, such | | | | country can review this application. |
| agreements become very difficult to negotiate but | | | | 2. The interested country then makes negotiations |
| are so powerful and influential once all the parties | | | | on bilateral agreements on trade with any country it |
| agree and sign the multi-lateral agreement. WTO acts | | | | prefers. The content of these agreements will apply |
| as the administrator. If there are unfair trade | | | | automatically to all members of WTO. |
| practices or dumping and there is complain filed, the | | | | 3. The review committee of WTO creates a draft of |
| staff of WTO are expected to investigate and | | | | the terms and conditions of membership which takes |
| check if there are violations based on the multi-lateral | | | | account of the necessary changes in its current trade |
| agreements. If the offending country is found guilty | | | | policies. |
| of violations, sanctions are levied. | | | | 4. Two-thirds of the member nations should vote |
| To become a member of WTO is very important. It | | | | that the interested country can become a part of |
| only means that a member country automatically | | | | WTO. After the voting, the new member must ratify |
| becomes part of the "Most Favored Nations." Having | | | | the membership agreement. |
| the status of being one of the "Most Favored Nation" | | | | If a country is not yet a member of WTO, they can |
| gives access to discounted tariffs and lesser trade | | | | opt to become the "observers" where they must |
| barriers, excessive regulations and import quotas that | | | | apply for membership within five years of being an |
| are all the privileges of WTO's members. These | | | | observer. |
| privileges pave way to bigger market for the | | | | The highest decision-making committee of the WTO |
| members' products which results to more sales, more | | | | is known as the Ministerial Conference which meets |
| jobs and better economic growth. | | | | biennially. All the members of WTO attend this |
| More than 75% of the members are ranked as | | | | conference. The last Ministerial Conference was held |
| developing countries. Through their membership with | | | | in Geneva from November 30 to December 2, 2009. |
| WTO, they can easily penetrate the market of | | | | |