Economic Functions of the WTO

The World Trade Organization is an international association that deals with the rules of foreign economic commerce for participating countries. Founded in early 1995, The function of the WTO is to monitor the implementation of the General Agreement on Tariffs and Trade (GATT). The number of its members totals more than 150 states. The headquarters of the World Trade Organization is located in the city of Geneva (Switzerland).

The countries that legislatively regulate international economic activity, respectively, with the terms of the Uruguay Round agreement, may apply for entry into the WTO. The process of entering the World Trade Organization is very scrupulous and lasting, takes about 5 years. First, the economy of the state and the trade policy are carefully studied, followed by negotiations on the interaction of benefits from the accession of the country's market to the WTO, in conclusion an agreement is reached and documents are drawn up. Membership is paid in accordance with the tariffs of the General Council.

Exit the terms of the agreement will not be difficult for any country: directly to the general director, a written notification is sent on the desire to leave the WTO. Six months after the notification has been sent, membership of the organization will expire. However, there were no cases of a desire to break the cooperation agreement in the history of the association's existence.

The main functions of the WTO:

• Monitoring of the commercial policies of the participating States;
• Monitoring compliance with the terms of the Uruguay Round agreement and other treaties between the WTO member countries;
• Organization and support of commercial negotiations of the association;
• Providing states with an information tool in the framework of the WTO program;
• Cooperation with international organizations to strengthen trade policy;
• Help in resolving the disputed issues.

The task and functions of the WTO are to expand the freedom of the world economy through the debugging of tariffication processes by reducing import duties, eliminating restrictions and barriers. Observers of the life of the association: the UN, IMF, OECD, UNCTAD, WIPO and many others.

The WTO is managed by a conference of representatives of all participating countries at the ministerial level. Meetings are held with a frequency of once every two years. They discuss the accumulated questions about the WTO function and consider candidatures for joining the agreement. At the conference, all decisions are reached by consensus. In the absence of a unanimous decision, a vote is permissible where the representative of each participating State has the right to one vote. Documents, decisions, contracts and agreements in the work of the organization are recorded in three languages: English, Spanish, French.

For accession to the WTO, agreement with international standards of trade rules established by its participants is required. It is necessary to create conditions for trade between countries, regulating market relations in the negotiation process. General issues are discussed directly within the organization, together with all interested.

The creation of a major economic market Russia-WTO lasted about 17 years. In 1993, an application was submitted for connection to the GATT, and since 1995 the RF has revealed a desire to join the World Trade Organization. A commission was established to study the trade industry in Russia, which was engaged in the search for mutually beneficial terms of cooperation.

There were also certain difficulties in regulating laws according to the standards of the trade organization. It was necessary to open the market for other states, adjust the customs fee, determine subsidies for the export of goods and raw materials, and provide state support to the agrarian sector. The courses of economic transformation were being prepared, long negotiations were held with the countries concerned. The Russian Federation joined the WTO in the summer of 2012. However, to date, Russian analysts do not view such an alliance as a comprehensive win for the country and predict the emergence of certain difficulties in the Russian economy.