World Trade Organization

The WTO began operating on 1 January 1995 after the 1986–94 Uruguay Round of multilateral trade negotiations. Its founding Marrakesh Agreement was signed in 1994. The organization succeeded the General Agreement on Tariffs and Trade (GATT), the postwar framework that had governed much trade in goods since 1948. Unlike GATT's original emphasis on goods, the WTO agreements also cover services and trade-related intellectual property. The organization is based in Geneva, Switzerland.

The WTO is governed by its members rather than by an independent global trade regulator. Its members include states and separate customs territories that have joined the agreements; negotiations over accession can be lengthy because applicants agree terms with existing members. The WTO's Ministerial Conference brings together representatives of all members and meets at least every two years. Between conferences, the General Council carries out the organization's work and can also meet as the Dispute Settlement Body or the Trade Policy Review Body. Many decisions are made by consensus, although the founding agreement provides for voting in specified circumstances. As of September 2026, the Congressional Research Service reported 166 members, which together accounted for about 98% of global trade.

WTO agreements set commitments and procedures for trade in goods, agriculture and services, and include rules on subjects such as tariffs, subsidies, technical barriers and intellectual property. Members use the organization as a forum for negotiating changes or additional rules. The WTO also reviews members' trade policies to improve transparency and administers the agreed dispute-settlement system. These rules do not eliminate national trade policies; they establish obligations members have accepted, with exceptions and flexibilities written into the agreements.

When a member believes another member has breached a WTO commitment, the process generally begins with consultations. If these do not resolve the disagreement, a panel can examine the case and issue findings under the relevant agreements. The procedure is intended to settle disputes through agreed rules rather than unilateral retaliation, although authorized countermeasures can be permitted when a ruling is not implemented. The appeals stage has faced a prolonged institutional problem: the Congressional Research Service reported that the Appellate Body has been unable to function since 2019 because members have not agreed on appointments. Some members have used an interim appeal-arbitration arrangement while wider reform discussions continue.

Supporters value common rules, transparency and a forum where economies of different sizes can negotiate and challenge measures they consider inconsistent with shared commitments. Critics have questioned whether the rules distribute gains fairly, constrain domestic choices, or adequately address labour and environmental concerns. Progress on broad negotiations has also been slow: the diverse membership must reconcile different priorities, and consensus can be hard to reach. These disagreements are part of the WTO's member-led character, and they underpin continuing efforts to reform its negotiating and dispute-settlement functions.