The WTO is one of the largest organizations in the world that air towards improving trade relations among countries. The organization has over 150 members with new countries looking to join membership soon mainly due to the benefits the members get to enjoy.
Some of the main advantages of its trading system are given below.
The WTO encourages free trade among nations. Due to its efforts, countries that were not on good terms came close with relationships improving. It is considered a strong tool in improving countries’ relationships that help bring peace to the world.
Under the WTO’s rules and regulations all the member countries have to follow certain rules and regulations. The organization has set a framework that has to be followed in case any kind of dispute arises among countries.
The availability of a solution beforehand allows disputes to be settled in a courteous manner without things getting ugly. Ever since the WTO came into existence the number of altercation among countries over trade issues has gradually declined.
Due to the WTO’s efforts, international goods are available around the world. This gives rise to competition which means all the producers work hard by providing customers with high quality goods at affordable rates.
When rates fall, people get in a position to buy more with their limited income allowing them to enjoy more benefits hence a decreased cost of living.
Many people credit the WTO for improved living standards in many countries. Due to its efforts, big brands and known names have reached every corner of the world. In addition, high quality products from developed countries are easily sold in underdeveloped countries allowing people from such countries to enjoy the same benefits so that they do not feel deprived.
When people get to enjoy such luxuries, their standard of living ultimately improves. However, this process may take a long time.
Thanks to the WTO’s efforts, countries have quickly grown in GDP as they get in a position to produce more and sell more thus increasing their exports that have a direct result on the GDP.
This is not only beneficial for one country but for both the countries because under the WTO’s agreement all the countries deserve the same rights and should enjoy the same benefits. It emphasizes on “non-discriminatory” behavior so that all the member countries are in a position to strengthen their economy and attain higher growth rates.
Under the WRO’s policy, once a commitment to liberalize trade is made it cannot be reversed, until agreed by all the countries so that such a decision does not cause any sort of loss to any member country.
Such rules discourage unwise policies by countries and allow businesses to enjoy clarity and certainty as the risk of trade related policies fluctuating regularly is minimized. This means good discipline for government as a stable economy and government is appreciated by all the sectors.