A Brief History of the World Trade Organization (1/2)

A question from Vietnam. Listener Nguyen Minh Tan wants to know more about the World Trade Organization and its history.

The World Trade Organization came into existence in 1995. It operates a system of trade rules. It serves as a place for nations to settle disputes and negotiate agreements to reduce trade barriers. The newest of its 150 members, Vietnam, joined in January. But the roots of the W.T.O. date back to World War Two and the years that followed.

In 1944, a meeting took place in Bretton Woods, New Hampshire: the International Monetary Conference. There, negotiators agreed to create the International Monetary Fund and the World Bank. But they could not agree on an organization to deal with international trade.

Three years later, in 1947, 23 nations approved the General Agreement on Tariffs and Trade, or GATT. It was meant to be temporary. Trade negotiations under GATT were carried out in a series of talks called rounds. The first round lowered import taxes on one-fifth of world trade. Later rounds produced additional cuts, and negotiators added more issues.