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News Link • Economy - International

Thirty Years of the World Trade Organization

• https://fee.org, Katrina Gulliver

This month marks the 30th anniversary of the beginning of the World Trade Organization. The WTO was created as a successor to the General Agreement on Tariffs and Trade (GATT), which had been in place since 1947. GATT was formed as a method of stabilizing and restoring trade after the Second World War.

But the global trade landscape had changed dramatically over the succeeding fifty years (not least the development of containerization for international shipping of goods). International trade had expanded massively, and developing nations were becoming manufacturing hubs, keen to export.

The WTO was the culmination of years of talks and preparation, reflecting the ambitions of politicians to expand international trade, but also to make sure their own nations got the best deal possible. Its arrival was, however, not welcomed by all. The rounds of talks and summits for the organization's early years were contentious, both within the discussion rooms and outside the buildings.

The third round of discussions in December 1999 in Seattle saw unprecedented protests. Rather than a routine international event, with diplomatic limousines and photo opportunities, there were scenes of chaos outside. These raucous protests would become known in the press as the "Battle of Seattle"—hardly the image President Bill Clinton had hoped to present to a global audience.

Passions were running high inside the meeting too. As the Wall Street Journal reported at the time:

Inside the WTO meeting, delegates from developing nations, including Pakistan, India and Brazil, threatened to block a new round of trade talks, refusing to sign any agreement to launch negotiations unless the U.S. and Europe agreed to their demands.

Outside the meeting, Seattle police SWAT teams used tear gas, pepper spray, rubber pellets and billy clubs against protesters who blocked access to the WTO meeting, forcing the trade organization to cancel its opening ceremony. Later in the day, about 30,000 labor-union members marched in a display of anti-WTO fervor.


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