Role of the WTO in the Development of International Trade and Economic Sustainability

Abstract

In the article, the role of the World Trade Organisation (WTO) in the development of international trade and economic sustainability has been analysed. The author explores specific challenges / factors that affect economic sustainability and fair trade as well as political economy of trade and negotiations as the tools of the WTO. It is argued that economic stability and the process of democratisation are essential to ensure international and fair trade. Under democracies those countries are implied where the rate of economic stability is high according to the principles established by international norms, i.e. where market economy, internal democracy, transparent trade system, human rights, trade neutrality, etc. are observed. Almost every country where these democratic norms are applied has trade partnerships with the others rather than conflicts. For international trade to occur it is essential to have a competitive market system in a country since competition is a characteristic feature of international trade that can be safeguarded through observation of democratic principles and political stability. Development of free trade by the WTO depends precisely on implementation of these fundamental principles. In view of the abovementioned factors, the article quite legitimately studies interconnection between the WTO and economic sustainability.