The World Trade Organization (WTO) is an international body that helps foster trade agreements and negotiations between countries. One of the main things this organization does is to focus on whether emerging and developing countries are getting involved in trade. When they do, their economies can definitely be uplifted and improved. The WTO also helps to keep agreements enforced, so all countries are treated fairly when it comes to trade.
Global Organization Analysis
The World Trade Organization, or WTO, has a strong role in promoting international trade (World, 2014). It not only supervises that trade, but also works to make trade more liberal for all countries (World, 2014). Since trade is an excellent way to keep the economies of various countries moving forward and growing, it would make logical sense that the WTO would be encouraging trade in many different capacities. The WTO was created in 1995 and offers a framework whereby countries can formalize and negotiate trade agreements with one another (World, 2014). There is also a process for dispute resolution so there is less risk to the countries who decide to trade with one another (World, 2014). Participating countries have to agree to the WTO requirements and regulations, and the current focus of the WTO is to bring in more developing countries and get them trading so they can provide more value for their people and offer goods and services that would be of interest to other countries (World, 2014; Daniel & Hughes, 2014).
By encouraging trade, the WTO is able to help any number of countries. Both large, developed countries and smaller, emerging countries can get assistance through the WTO and work with that organization in order to foster trade relationships with other countries (World, 2014). There is a spirit of fairness that comes through working with the WTO, so that each and every country that does so agrees to the same things and abides by the same rules and regulations (World, 2014). When that is done properly, it makes the world as a whole much better for trade and can help numerous countries have economies that are better developed and more solid. Having good trade relationships with other countries can also help a country have a better dialogue with its trade partners regarding other matters, as well. That is one of the best ways for countries to work together on world issues.
One of the most recent examples reflecting the interest of the WTO in promoting trade on an international level can be seen in its intervention between the U.S. And India. The issue there is about solar power, and the U.S. is taking India to the WTO because it wants a larger foothold for U.S. manufacturers in the solar products market in that country (Daniel & Hughes, 2014). Essentially, the United States does not believe India is playing fair when it comes to how much of a market share the U.S. is being given in that country (Daniel & Hughes, 2014). That may be a legitimate concern, but there is already a very strained relationship between the two countries, and going before the WTO to complain and defend against the complaint is only going to make things worse (Daniel & Hughes, 2014). However, it is also very important to ensure that India really is exercising fair play when it comes to every country that gets into its solar power market, including the United States.
The WTO exists to level the playing field, and that is what it will do when it hears the U.S.' case against India. The issue at hand is that India allegedly is using only in-country developers and companies for the solar panels it is creating, which is keeping out U.S. developers and, therefore, not fostering trade (Daniel & Hughes, 2014). The issue is also the second time in 12 months that the U.S. has sought out the help of the WTO for the same concern with India's solar program (Daniel & Hughes, 2014). India has argued that the way it handles its solar program is legal based on the WTO's current guidelines, but that is something for the WTO to decide (Daniel & Hughes, 2014). The United States has stressed that it appreciates its relationship with India and that this dialogue it has opened through the WTO will not impact the overall relationship in any way (Daniel & Hughes, 2014). It will simply be up to the WTO to make a ruling as to the legality of India's solar program when it comes to using only India-based parts and suppliers.
The role of the WTO is different in some ways from the role of a regional organization, such as the African Development Bank. However, the WTO does have some similarities to regional organizations. The African Development Bank (AfDB) makes loans and investments, and it also provides assistance for programs and projects for development (African, 2014). Additionally, the Bank promotes investing private and public capital for different types of development and assists RMCs in organizing their development policies (African, 2014). National projects and multinational endeavors that work toward promoting regional integration are important to the AfDB (African, 2014). As can be seen, the desire and duty to promote both national and multinational projects is very similar to the goal of the WTO, but yet not quite the same.
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