What are Trade Organizations?
Trade organizations are voluntary associations between countries, formed with the purpose of liberalizing or opening trade between those countries. The member nations in trade organizations may, for example, agree to allow each other’s products into their markets, without those products being subject to tariffs or other trade barriers. This is done with the intention of providing economic benefit to all countries involved.
Trade organizations are voluntary associations between countries, formed with the purpose of liberalizing or opening trade between those countries. The member nations in trade organizations may, for example, agree to allow each other’s products into their markets, without those products being subject to tariffs or other trade barriers. This is done with the intention of providing economic benefit to all countries involved. There are many formal and informal trade organizations between the world’s countries, but the most well-known of those is the World Trade Organization (WTO). The WTO was founded on 1 January 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). The WTO has as member nations, most of the countries in the world, including all of North America and South America, most of sub-Saharan Africa, Southeast Asia, the south Pacific, Australia, and Europe. This represents more than 95% of total world trade.
