Economic Foundations of International Trade in the Context of WTO

World Trade Organization was created at the Uruguay round of talks in 1994. GATT (General Agreement on Tariffs and Trade) transformed into a permanent institution. The Uruguay Round negotiations started in Uruguay in 1986. The aim of this round was to promote free trade. The WTO is responsible for trade negotiations, trade disputes and handling national trade policies. WTO agreements are endowed with technical assistance to developing countries and also cooperate with other international bodies on trade related issues. The presumption is that, all members have an equal voice in the decision making process. With the increase of free trade it is crucial that World Trade Organization servers to speed up world economic activity. This cannot be done without referring to the social, cultural, economic consequences, particularly with regard to vulnerable groups. Dumping is a practice of selling goods in another country at a considerably lower price. Anti-Dumping measures are deliberate and prevent a company from selling goods lesser than the cost to force the contender out of business. Anti-dumping rules cause economic mischief by shrinking markets and excluding efficient producers, there by hoist prices for consumers