World Trade - Global Economics in the 21st Century Essay

World Trade - Global Economics in the 21st Century - Essay Example In the United States, trade deficits with China have soared as American products are unable to compete with the less expensive Chinese imports. American agricultural exports of corn, soybeans, and wheat reach markets all around the globe as vegetables from Chile and Mexico fill our supermarket shelves. Trade is everywhere and world trade seems to be a chaotic mix of goods and money, commodities and cash. However, world trade, administered under regional trade agreements and the World Trade Organization, are actually rather well-orchestrated transactions with rules, agreements, quotas, and regional trade organizations. A central component of the agreements on international trade is the World Trade Organization (WTO). The WTO is the "only global international organization dealing with the rules of trade between nations" (What is the WTO?). The WTO was established in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT). The GATT evolved as an international forum for establishing fair trade guidelines, negotiating agreements, and settling trade disputes. The biggest accomplishment of the international forum is that it has "dramatically lowered both tariff and non-tariff barriers around the world, creating freer trade and contributing to postwar world growth" (Democratizing the World Trade Organization). In addition, the WTO has addressed the issues of quotas and subsidies that give nations an unfair advantage on the world market. The 153 members of the WTO have agreed to non-discrimination in regards to tariff levels among the member nations, and have agreed to treat them all equa lly. The WTO is simply an organization that works to liberalize trade and reduces the barriers to international commerce. The vast amount of world trade is conducted under the WTO and is regulated by a set of agreed-upon principles. All members agree to treat all other members equally.