GLOBALIZATION »» FREE TRADE »» WORLD TRADE ORGANIZATION »» Jul 18, 2022

The World Trade Organization (WTO) is an UN-affiliated organization that attempts to promote and supervise international trade. About 95% of all global trade is conducted between nations affiliated with the WTO. It regulates trade between participating countries, negotiates trade agreements, resolves disputes and enforces participants' adherence to WTO agreements. The WTO uses the principles of free-market capitalism when ruling whether a member state is compliant with its policies. Its panels, composed of government and industry representatives, decide whether a nation’s laws are a “barrier to trade” and in violation of free trade agreements. WTO’s “most favored nation” provision requires member states to treat each other equally. It also requires member nations to conform to many regulations such as the self-reporting of subsidies their governments provide to their industries, and whether or not they consider themselves to be a developing nation. The WTO allow “special and differential” treatment to developing countries, giving them a degree leeway with conforming to its rules such as extending deadlines to lower trade barriers. The European Union, Japan and the U.S. have complained that some countries, like China, falsely claim to be developing nations while possessing the second largest economy in the world. They also claim the subsidies China pays its industries give them an uncompetitive advantage in the global marketplace. Proposed Legislation: H.R.6627 - Enforcing Accountability and Transparency in International Trade Act (116th Congress) Prospective Sponsor: Rep. Tim Burchett (TN)