On 1 January 1995, World Trade Organisation (WTO) was established, with 164 member countries to-date, representing 98 per cent of world trade.

WTO promotes global trade through market opening measures and strengthening of existing or establishing new rules in response to the dynamic global trading environment. It is the only international organisation governing the multilateral trading system, through the following functions:

• Administering WTO trade agreements
• Forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies
• Technical assistance and training for developing countries
• Cooperation with other international organisations
   

Malaysia became a member of the WTO on 1 January 1995 by virtue of its membership in the General Agreement on Tariffs and Trade (GATT) since 24 October 1957 and participation in the Uruguay Round. This makes Malaysia one of the founding members of WTO. 

Malaysia has been benefiting from the transparent and predictable trading environment provided by the WTO which contributes towards Malaysia's economic growth and development. The lowering of the trade barriers in overseas markets and increased market opportunities has allowed Malaysia's trade to grow besides enjoying the non-discriminatory treatment accorded to Malaysian exports of goods and services. WTO-based trade remedies also provide recourse to Malaysian industries against unfair trade practices.

Ministry of Investment, Trade and Industry (MITI) is the focal point in consolidating and streamlining Malaysia's active participation at WTO. Malaysia is represented at WTO by the Permanent Mission of Malaysia to the WTO based in Geneva, Switzerland.

The current Director-General of WTO is Dr. Ngozi Okonjo-Iweala (Nigeria), who was appointed by WTO members on 15 February 2021, making her the first woman and the first African to serve as Director-General.

WTO’s rules – the agreements – are the result of negotiations between the members. The current set is largely the outcome of the 1986-94 Uruguay Round negotiations, which included a major revision of the original GATT.

WTO agreements cover goods, services and intellectual property, which spell out the principles of liberalisation and the permitted exceptions. These agreements include individual countries’ commitments to lower customs tariffs and other trade barriers, and to open and keep open services markets. The agreements also set procedures for settling disputes, as well as prescribe special and differential treatment for developing countries. The agreements require governments to make their trade policies transparent by notifying the WTO about laws in force and measures adopted, and through regular reports by the Secretariat on countries’ trade policies.

All WTO legal texts can be accessed here.