Which organization sets rules for international trade?

Which organization sets rules for international trade? The World Trade Organization (WTO) sets the central rules for international trade.

The WTO was established on January 1, 1995, after the Uruguay Round of negotiations. It succeeded the General Agreement on Tariffs and Trade, or GATT, which had governed much international trade since 1948. The WTO’s agreements cover goods, services, intellectual property, tariffs, subsidies, and trade disputes.

The WTO does not act like a world government that commands every country. Its members negotiate and agree to the rules, usually by consensus. The organization administers those agreements, monitors trade policies, provides a forum for negotiations, and offers procedures for settling disputes.

A common mix-up is confusing the WTO with the World Bank or International Monetary Fund. The World Bank focuses mainly on development finance, while the IMF works chiefly on monetary stability and balance-of-payments issues. The United Nations has a much broader political and humanitarian role; it is not the institution responsible for the global trading system.