The World Trade Organization provides security, as well as predictability to the multilateral trade. This assertion is true, since the multilateral trade is perceived as the exchange of goods amid the members of certain organizations (Malanczuk, 1999). Thus, such kind of trade could not qualify to be controlled by states, but by the World Trade Organization, as a private economic operator. Therefore, all market transactions involved in the world trade organization necessitate the stability and the predictability guaranteed by the government. This includes the laws that govern the organizations, as well as the regulations they must follow as per the government. For instance, long-term business transactions require such rules and regulations in order to avoid cases of disputes in the prospect. The World Trade Organization has its Agreement Act, which both parties sign whenever business is being transacted (John, 2003). This makes the trading secure and predictable in terms of the expected outcome. Failure to follow such rules leads to trade sanctions of the members, which have an adverse effect on the world business systems.
In terms of security, the World Trade Organization ensures the issues of money laundering, and terrorism, as well traffic in arms is handled with the great concern. For instance, the gadgets required to control terrorism include the monitoring of cross-border cash transportation. This could call for a reduction in the charges of capital movement to diverse places. Terrorism cases, while transporting cash, have become a daily routine due to the advanced technological systems. Some of the measures taken to control terrorism cases include the prohibition of those, who work within the borders, from having any economic resources.
The money laundering issue is also a concern of the security in the World Trade Organization. There are several transgovernmental bodies formed to ensure that there is free circulation of money. The traffic in arm is also a challenge, where people transport illegal manufactured foods and fire arms to the foreign countries (Lowenfeld, 2006). The illegal food is usually transported in order to be sold at relatively cheaper price. This could also involve issues of food poisoning of those, who consume the food without their knowledge. The government also supports the World Health Organization in making sanctions to the countries found guilty. Therefore, this requires a complete and advanced system of control, for example, computers. There should be a centralized system to monitor the various activities taking place in the WTO; the complex system ought to oversee the worst criminal activities, which can destroy the international trade.
A kind of a dispute that arises between the members of the World Trade Organization includes the adoption of a trade policy that is considered inconsistent according to the WTO Agreement. The offended member is allowed to appeal to the terms and agreements to ensure the predictability of trade (Stewart & Dwyer, 2007). The parties of the disputing members may fail to agree on the matter, a situation that calls upon the rule-based procedure to assess it. The problem is then solved by an independent body, since the WTO Agreement terms fail to apply. The independent body includes the appellate body, as well as the panels. However, the complaints may prevail making the appellate body unable to deal with the situation. This calls for withdrawal of the rule in the WTO Agreement Act. The suspension of such measures occurs only on the basis for the secondary, as well as temporary solutions to the arising problem. This implies that every measure is taken to ensure a solution is reached, rather than do away with the regulations governing the WTO system.
The World Trade Organization, therefore, is a channel, through which the members are assured of the enforcement of the rules and protection of their rights in a favorable trading environment. It also provides a ground of disagreeing with the formulated rules in case one feels that they do not make a good impression. The WTO laws should not be altered between the parties in case of a business transaction, since it would be a change of the operations. This negates the WTO’s primary purpose of making trade easier and open to every citizen of the globe. The first stage in settling of the disputes in WTO involves a period of consultation, which takes sixty days. This allows for negotiations amid the disputing countries to find out whether they could reach an agreement or not. At this stage, the goal of WTO is to guarantee the safety and certainty of the bilateral trade. Thus, WTO provides the disputing parties with their director-general to act as their mediator. The subsequent stage allows for the request of appointing a panel to engage into the negotiations (Van der Borght, 1999). The period allocated to this stage extends to forty five days. There is a law in this stage that gives permission to the disputing country to block the formation of the panel. However, once they fail to block it for the first time, the chance is lost in the second time as well. This is a rule-based settlement plan, which otherwise could be altered in the consensus opposing the appointment of the panel. It is, therefore, hard to oppose the rulings of the panel, since its rulings are founded on the references drawn from the WTO Agreement Acts (Brakman & Marrewijk, 2001). For instance, in the case of dispute on perishable goods, the final report is submitted to the disputing parties in a reduced time span of three months. This is contrary to the normal six months given as a custom.
The final report consists of the details on how the matter will be addressed by the panel. For instance, the panel ought to have a hard copy of each of the disputing parties’ cases. This is followed by the hearing of the case of the complaining country, which is accompanied by their defense. Their case is presented to the panel and the interested members of various countries. The disputing countries then ought to hand in their rebuttals, as well as their oral arguments to the panel at the following procedure and the second seating. If the case should involve some scientific or technical evidence, the panel has an extra task of appointing the experts in such fields to address the matter (Panizzon, 2006). A first draft report is then produced by the panel concerning a factual argument of the two sides, while giving a period of two weeks for any arising comments. This is followed by the interim report of the panel’s findings, as well as their verdict on the cases. This allows for one week presenting of reviews from the complainants. The review of the interim report does not exceed two weeks, since a decision must be reached in the shortest time possible. This later calls for the submission of the final report in a period of three weeks. The report is submitted to the two parties, as well as the World Trade Organization members. This is for the purpose of clarification and transparency of all the involved members. With the final report submitted, it finally becomes a ruling within sixty days, which the disputing sides could appeal within. An appeal could be based on the local or global interpretation of the laws that govern the trade systems.
All the procedures mentioned above are followed, since the modern world has seen a lot of transboarder criminal activities, while dealing with exports and imports of goods and services. This calls for a sturdy intergovernmental response to the law offenders. The involvement of the non-military governance in such laws leads to the formation of international appeal bodies to deal with such rule-based systems (Gian, 2008). It is a guideline, while forming these laws, that they should be relevant to the policy and synergy tensions of the trade and law enforcement. The policy based systems have also played a major role to combat smuggling of goods into any country. These are some of the businesses that are sometimes supported by some government officials. The rule-based system takes actions to any individual found guilty of the offense. It does not allow for discrimination, since by doing so, the minority could be disadvantaged. The overview of the global business terms of trade have led to the observation of human rights in the World Trade Organization. It also leads the environmental protection in industrial goods and services. For instance, the WTO does not advocate for dumping of waste products from the industries into the water sources.
The assurance, given by the World Trade Organization, results in an amplified economic growth and expansion of the business sectors. WTO also provides the basis for the developing countries to improve their trade. This is by considering their exports and imports at some improved prices, so as to encourage them. They also ensure intelligibility of the members in their business deals, so as to persuade more populace to join. The World Trade Organization is also interested in recruiting more member countries. Therefore, they organize some trade seminars and global business awareness events in order to educate people on the importance of business in the modern world. This has created a great impact in the world as it is evident that the global standards of trade have rapidly improved (Bredimas, 2005). These motivation programs have seen the appointment of approximately thirty countries, which are not members yet.
The World Trade Organization also conducts universal economic research, as well as circulates information to the various support sectors. The research information is used to assess the global economic state of the world. This data is also useful in determining the state of economic depression, as well as in ranking world businesses. For instance, the research conducted could tell the level of currency circulation in the World Bank, and the amount of cash that should be in circulation in the prevailing economy. The World Trade Organization creates awareness to the public on its mission and goals in a specific period of time. Such information is crucial in predicting the economy and the outcome of its activities to the public. This, in turn, contributes to the sustainable development in the world. WTO assesses the individuals living below the poverty line and addresses the issues in terms of encouraging the masses to adopt entrepreneurial skills, rather than wait for the employment. Thus, they broaden the global markets and reduce the taxation on goods imported in such areas, so as to improve the business ventures in those places.
The World Trade Organization works in collaboration with several bodies to guarantee a general work order. For instance, the World Health Organization makes sure the traded goods are in safe conditions before being sold to the consumers. This is linking with the Bureau of Standards for assertion (Panitchpakdi, 2006). The predicted nature of activities resulting from this collaboration gives the assurance to the World Trade Organization to thrive for more years in the market. Their terms and conditions also enable the government to fully support their activities. The presentation of their financial budget for the year, as well as the accomplished tasks, while serving the society makes them to be at the forefront of the most recognized organizations.
In conclusion, the World Trade Organization has been successful in the past and continues to gain milestones in the current world. The organization maintains peace in the broader aspect of national harmony. This is by settling the disputes that arise among the companies on the trade items (Steinberg, 2002). In another aspect, the World Trade Organization has led to abridged terrorist behavior in commerce. Previously, such cases were rampant and made people and foreign investors to be afraid of losing their money. However, with such success evident and a peaceful state of buying and selling goods, the world is all ears to any upcoming business project. This has also encouraged the entrepreneurial skills among several people.