THE ROLE OF THE WORLD TRADE ORGANIZATION (WTO) IN PROMOTING FREE TRADE AND REDUCING PROTECTIONISM

Abstract

The World Trade Organization (WTO) is dedicated to promoting free trade and mitigating protectionist measures through negotiated agreements, transparent practices, and a structured dispute resolution system. This study evaluates the WTO's effectiveness in these domains, particularly examining how its trade policies and enforcement strategies have contributed to the reduction of trade barriers. The study utilizes theories of absolute and comparative advantages as its framework of study. The research methodology involves analyzing secondary data derived from relevant qualitative articles and policy documents. The results indicate a significant decrease in tariffs and an increase in the resolution of disputes since the establishment of the WTO. However, challenges remain due to the emergence of regional trade agreements and the complexities associated with digital commerce. The study finds that, the WTO has contributed in enhancing global trade, however, there is need for the organization to adapt its policies to address contemporary economic challenges to maintain its relevance. While this study uses theories of absolute and comparative advantages to analyze how WTO promote free trade and reduce protectionism, previous researches investigate the WTO from the economic and institutional performance.

Keywords

• WTO
• Trade Barriers
• Protectionism
• Free Trade
• Dispute Resolution
• Multilateral Agreements