Understanding the World Trade Organization: Structure and Functions

The World Trade Organization: Structure and Functions

While the GATT was a contractual agreement among its member states, the WTO is an international organization with a legal personality. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible to liberalize trade.

WTO Governance and Decision-Making

The formal actors in the WTO are the member states. The principal decision-making body is the Ministerial Conference, which meets every two years. Because it meets infrequently, it has delegated its competence to the General Council, which consists of all 164 WTO members. The General Council also acts as the:

• Dispute Settlement Body
• Trade Policy Review Body

The organizational structure of the WTO is completed by three additional councils.

Core Functions of the WTO

The main functions of the WTO include:

• Administering trade agreements: Serving as a forum for trade negotiations. WTO agreements cover goods, services, and intellectual property, managing them under the principles of liberalization to achieve lower customs tariffs and open services markets.
• Handling trade disputes: The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing rules and ensuring smooth trade flows.
• Monitoring national trade policies: Providing technical assistance and training for developing countries.
• International cooperation: Collaborating with other international institutions such as the IMF and the World Bank.