The WTO was created in 1995 from the General Agreement on Tariffs and Trade (GATT) as a body to lower tariffs and, therefore, enhance trade and oversee economic disputes between nations. GATT had been created in 1948, and the body achieved notable gains in eliminating tariffs. However, it was less successful in overcoming nontariff barriers to trade such as subsidies and commercial practices. Consequently, during the Uruguay Round of GATT (1986-1995), a range of reform proposals were considered. Participant countries in GATT agreed that further economic progress could be accomplished only through the development of dispute resolution mechanism and trade review mechanisms. To accomplish these tasks, there were calls for the creation of an institutional framework. The result was the launch in 1995 of the WTO, which has since endeavored to promote free trade and prevent trade wars between regional economic blocs such as the European Union (EU) and the North American Free Trade Agreement.

The new body initially had 73 members (that number had grown to 150 by 2007). The members of the EU are represented by a joint delegation. Members of the WTO were required to sign and adhere to some 30 separate economic agreements. These accords cover areas such as agricultural policy, market access, export subsidies, and tariffs and trade. The institutional framework of the WTO consists of the Ministerial Conference, which includes the trade or finance ministers of member states and meets every two years. The day-to-day operations of the WTO are undertaken by the General Council, headquartered in Geneva; the Dispute Settlement Body; and the Trade Policy Review Body. There are also several area-specific bodies and subsidiary agencies. The WTO operates on a consensus basis rather than by majority voting.

The WTO has been the focus of intense internal and external criticism. WTO members have often divided between developed and developing states on issues related to globalization and development. These disagreements have repeatedly resulted in the failure to gain consensus on controversial issues such as agricultural subsidies and tariffs on manufactured goods. For instance, efforts to resolve use of agricultural subsidies by the United States and the EU began in 1996, but a series of plans to resolve the dispute were defeated until August 2004 when discussions in Geneva resulted in an accord whereby the subsidies were lowered in developed countries while developing countries agreed to lower barriers to manufactured products. Final approval of the Geneva agreement could not be reached, and in 2006 these agenda items were suspended. . .