The role of world trade organization in international trade and investment

Abstract

This paper examines the role of the World Trade Organisation (WTO) in the promotion of international trade and investment. It gives a brief historical background of the limitations and constrains of international trade prior to the establishment of the WTO. The establishment of the WTO heralded a multilateral international institution with a global face. The existence of WTO has led to the liberalisation of international trade and investment. The WTO also has well-structured institutions to ensure economic globalisation and enforcement of trade regimes amongst member states. However, the mistrust and lack of ability for states to put their economic difference aside has stalled trade negotiation rounds. The polemics between developed and developing member states have led to a proliferation of regional economic organisation which policies sometimes run foul with that of WTO. This has the potential of weakening the impact of WTO. It is thus concluded herein that, for WTO to continue to be effective and not lose its relevance, it must continue to assure its member states, especially the developing countries, of having their interest at heart by ensuring that it does not just promote free but fair trade.