The trade agreement that lower trade barriers and established the World Trade Organization (WTO) was the Uruguay Round of negotiations, which concluded in 1994. This agreement led to the creation of a rules-based trading system that promotes free and fair trade among nations.
The Uruguay Round included negotiations among 123 countries and covered a wide range of issues related to trade, including agriculture, services, intellectual property, and the establishment of the WTO. The agreement aimed to lower trade barriers, such as tariffs and quotas, which made it difficult for countries to export their goods and services to other nations. By reducing these barriers, countries could benefit from increased trade and economic growth.
One of the most significant outcomes of the Uruguay Round was the creation of the WTO. This organization serves as a forum for countries to negotiate and enforce international trade rules and resolve disputes related to trade. The WTO operates on the basis of a set of agreements that were developed as part of the Uruguay Round. These agreements cover a broad range of issues, including the elimination of tariffs and non-tariff barriers to trade, the protection of intellectual property rights, and the liberalization of trade in services.
The Uruguay Round and the establishment of the WTO have had a significant impact on the global economy. Since the conclusion of the negotiations, global trade has increased dramatically, and many countries have experienced economic growth as a result. The WTO has also played an important role in promoting the development of poorer countries by providing technical assistance and training to help them participate more effectively in international trade.
Overall, the trade agreement that lower trade barriers and established the World Trade Organization was a crucial step in the development of a global trading system that promotes free and fair trade. The Uruguay Round and the WTO have helped to create a more prosperous and interconnected world, and they continue to play an important role in shaping the future of international trade.