World Trade Organization (WTO) – AS/A LEVELS/IB/IAL

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes

What is the World Trade Organisation (WTO)?

The main objective of the WTO is to liberalise trade (lower trade barriers) between its member countries. It does this by providing member countries governments with a forum for negotiating trade agreements.

World Trade Organization – Home page – Global trade (wto.org)

What are the roles of the World Trade Organisation (WTO)?

• It operates a global system of trade rules between member countries.
• It acts as a forum for negotiating trade agreements.
• It settles trade disputes between its member countries.
• It supports the needs of developing countries.

Possible conflicts between Regional Trade Agreements and WTO

• Conflict of principles – external tariff on trade outside the trading bloc introduces protectionism; customs union and free trade areas contradict the WTO’s principles
• WTO too powerful – can be argued that the WTO is too powerful and neglects developing countries

Quick Fire Quiz – Knowledge Check

1. Identify the main objective of the WTO (2 marks)

2. Identify the four key roles of the WTO (4 marks)

3. Identify and explain two conflicts between Regional Trade Agreements and WTO (4 marks)

Next Revision Topics

• Patterns of Trade
• Terms of Trade
• Trading Blocs
• Specialisation and Trade
• Globalisation
• Imports / Exports
• Balance of Payments
• Exchange Rates
• International Competitiveness

A Level Economics Past Papers

• AQA
• Edexcel
• OCR
• WJEC