World Trade is the exchange of goods and services across national boundaries at a global scale. Commonly known as international Trade or global Trade, world trade is a complex process influenced by markets, currencies, trade agreements, regulations, and government policies. World Trade supports the concept of a global economy influenced by both politics, leadership, and markets. International Trade accounts for a significant portion of the Gross Domestic Product in most countries. While the transnational exchange of goods and services has been going on in much of human history, its importance in countries’ economic, political, and social spheres has been rising in the last couple of centuries (Heakal, 2021; Allias, 2021).
The international community has been forming various economic organizations to facilitate Global Trade to justify and streamline trade between different countries of different economic output. The World Trade Organisation (WTO) is the current one. The main objective of the World Trade Organisation is to facilitate and grow international trade. World Trade functions on the concept of import and export, where goods entering a given country from another country constitute its imports and those being transferred from the country to another country constitute its exports.
Politics are an essential element of global trade. Political considerations see many non-governmental actors attempting to increase their power to force governments to adopt policies (such as regional trade agreements and multilateral agreements) to benefit from free trade. In this regard, the World Trade organisation is an integral component of the world’s economic and political system. Build around obtaining consensus among its signatories, the World Trade organisation is an economic institution whose primary mission is to ensure stability, efficiency, reliability, good governance, and productive diplomacy in World Trade policy. WTO establishes norms that spur economic growth, eradicate trade barriers, promote fair trading practices through the Most Favourite Nation (MFN) principle, and offers a platform for solving trade disputes among nations (Baldwin, 2016). However, with 164 countries, three-quarters of which are classified as less developed countries, WTO accounts for 95% of the World Trade, but the consensus is difficult to achieve.
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