The World Trade Organization: Promoting Fair and Smooth Global Trade
The World Trade Organization (WTO) is the world's central body for
regulating and promoting international trade. Established in 1995, it represents the
culmination of decades of efforts to create a framework for fair and smooth trade
practices between nations. With 164 member countries, the WTO acts as a forum
for negotiating trade agreements, settling trade disputes, and ensuring that trade
flows freely without unfair barriers.
Here's a breakdown of the WTO's key functions:
- Rule-making: The WTO establishes a set of trade rules embodied in various
agreements. These agreements cover areas like tariffs, subsidies, intellectual
property rights, and product safety standards. Member countries agree to abide by
these rules, creating a level playing field for international trade.
- Dispute Settlement: The WTO provides a mechanism for resolving trade disputes
between member countries. This involves a formal process where countries can
present their cases and independent panels issue rulings. These rulings can be
appealed, but ultimately, they aim to ensure fair trade practices and prevent
countries from resorting to protectionist measures.
- Trade Liberalization: The WTO works to reduce barriers to trade, such as tariffs
and quotas. This is achieved through trade negotiations between member countries,
with the goal of increasing market access and promoting economic growth.
- Trade Monitoring: The WTO monitors the trade policies of its members and
reports on how they comply with WTO agreements. This helps to ensure
transparency and accountability in the global trading system.
The WTO has also played a significant role in shaping the global economy
since its inception. Since its commencement, WTO has a lot of achievements:
- Increased Global Trade: Trade has flourished under the WTO's framework,
leading to greater economic integration and interdependence between countries.
- Economic Growth: The elimination of trade barriers has boosted economic
growth for many countries, particularly developing nations.
- Improved Living Standards: Increased trade has led to a wider variety of goods
and services at lower prices for consumers around the world.
The WTO continues to play a vital role in the global trading system.
However, it needs to adapt to address the challenges of the 21st century. This
includes finding ways to ensure that developing countries benefit more from trade,
promoting sustainable trade practices, and addressing concerns about the social
impact of globalization.
Turkmenistan on the Path to Joining the WTO: A Budding Relationship
Turkmenistan, a Central Asian nation rich in natural gas reserves, is actively
pursuing membership in the World Trade Organization (WTO). While not yet a
full member, Turkmenistan has taken significant steps towards WTO accession,
building a relationship focused on integration into the global trading system.
In July 2020, Turkmenistan gained observer status, a crucial first step in the
accession process. This allows the country to participate in WTO meetings and
gain a deeper understanding of its rules and regulations.
A formal application for full membership was submitted in November 2021.
This triggered the establishment of a Working Party by the WTO to oversee the
accession process.
In February 2022, Turkmenistan's status was upgraded to "active observer,"
granting it greater involvement in WTO discussions and negotiations.
Throughout 2024, technical working sessions have been held between
Turkmenistan and the WTO Secretariat. These sessions focus on crucial areas like
intellectual property rights, trade in services, and trade agreements, paving the way
for a Memorandum of Foreign Trade Regime (MFTR).
Benefits of WTO Membership for Turkmenistan:
- Increased Market Access: Joining the WTO would allow Turkmenistan to access
new markets for its exports, particularly natural gas and other resources.
- Foreign Investment: WTO membership can make Turkmenistan a more attractive
destination for foreign investment, leading to economic diversification and job
creation.
- Trade Facilitation: The WTO framework promotes streamlined customs
procedures and reduced trade barriers, making it easier and cheaper for
Turkmenistan to import and export goods.
The relationship between Turkmenistan and the WTO is one of ongoing
engagement. As Turkmenistan progresses through the accession process, it will
continue to work with the WTO to address challenges and implement necessary
reforms. Full membership in the WTO holds the potential to unlock significant
economic benefits for Turkmenistan, but the road ahead requires dedication and a
commitment to adapting to the global trading system.
The WTO remains a dynamic and evolving organization. As the global
economy continues to change, the WTO will need to adapt and address new
challenges to ensure that international trade remains a force for good in the world.
Yagshymyrat OVEZOV,
the 2nd year student
of the Faculty of
International Economic Relations
of
the Institute of International Relations
of
the Ministry of Foreign Affairs of Turkmenistan.