World Trade Organization (WTO)

World Trade Organization (WTO): Recently, the WTO revised its global merchandise trade volume growth forecast for 2025 to a decline of 0.2%, amid fears over the U.S. tariff developments.

• About World Trade Organization: It is an intergovernmental organization that regulates and facilitates international trade between nations.

o Establishment: It came into operation in 1995, following the 1994 Marrakesh Agreement.

o Predecessor: WTO replaced the General Agreement on Tariffs and Trade (GATT), established in 1948.

o Trade Areas: It facilitates trade in goods, services and intellectual property by providing a framework for negotiating trade agreements.

o Agreements: Aim to reduce or eliminate tariffs, quotas, and other restrictions, signed and ratified by member governments.

o Membership: WTO has 164 member states, representing over 96% of global trade and global GDP.

o Headquarters: Geneva, Switzerland.

o Decision-making: By consensus, with all 164 members enjoying veto powers.

• About WTO’s Global Trade Outlook and Statistics Report: As per the report, the World merchandise trade volume projected to grow 2.6% in 2024 and 3.3% in 2025, after a decline of -1.2% in 2023.

o GDP Trends: World real GDP growth slowed from 3.1% in 2022 to 2.7% in 2023, and is expected to stay at 2.6% (2024) and 2.7% (2025).

o Inflation Outlook: Inflation is expected to gradually abate in 2024–25, boosting real incomes and consumption in advanced economies.