The Foundation of the World Trade Organization,

and its Functions as Center of Global Economy

Al-maizhar Bakil
BSCE-2B

The World Trade Organization (WTO) is an intergovernmental organization that was established
in 1995 to promote and regulate international trade. It is responsible for creating and enforcing the rules
and regulations governing international trade and resolving disputes between member countries. In this
essay, we will discuss the foundation, function, roles in globalization, and the relation of the WTO to the
Philippines.
The WTO was established as a successor to the General Agreement on Tariffs and Trade (GATT),
which was created in 1947. The GATT was formed to reduce trade barriers and promote international
trade. However, the GATT lacked enforcement power and had limited coverage, and it was not effective
in regulating trade disputes. In response to these limitations, the WTO was established as an updated
and more powerful international organization to promote free and fair trade.
The main function of the WTO is to promote and regulate international trade by creating and
enforcing rules and regulations. The WTO provides a platform for member countries to negotiate and
agree on trade policies and regulations. It also provides a mechanism for resolving disputes between
member countries. The WTO also works to increase transparency in trade policies and to promote
development by helping developing countries participate in international trade.
The WTO plays a significant role in globalization by promoting free and fair trade between
member countries. It helps to remove trade barriers such as tariffs, quotas, and subsidies, which can
restrict the flow of goods and services between countries. The WTO also promotes the use of
intellectual property rights and encourages the protection of the environment and labor rights in trade
agreements. By promoting open trade, the WTO helps to increase economic growth and create job
opportunities, which can benefit both developed and developing countries.
The Philippines became a member of the WTO in 1995. Since then, the country has experienced
both benefits and challenges as a result of its membership. On the one hand, membership in the WTO
has allowed the Philippines to participate in global trade and benefit from increased access to
international markets. The country has been able to export more goods and services and attract foreign
investment. On the other hand, the Philippines has faced challenges in complying with the WTO's rules
and regulations, particularly in areas such as intellectual property rights and government procurement.
The Philippines has also had to deal with the negative effects of global trade liberalization, such as
increased competition and the displacement of local industries.
The World Trade Organization plays a significant role in promoting and regulating international
trade. It is responsible for creating and enforcing rules and regulations governing trade and resolving
disputes between member countries. The WTO plays a critical role in globalization by promoting free
and fair trade, protecting intellectual property rights, and encouraging environmental and labor
protections. While the WTO has brought benefits to countries like the Philippines, it has also presented
challenges that require careful management to ensure that the benefits of trade are shared equitably.