The World Trade Organization (WTO) is the global international organization that deals with trade rules between nations. WTO agreements, negotiated and signed by the world's trading nations, provide governments with a forum to negotiate trade agreements and resolve disputes. The WTO agreements negotiated and signed by the world's trading nations provide the basic legal rules for international trade. These are essentially contracts that bind governments to keep their trade policies within agreed limits. The goal is to help manufacturers, exporters and importers conduct their business fairly, while enabling governments to achieve social and environmental goals. Trade relationships often involve conflicting interests and therefore need some guidelines written into WTO agreements for resolution and to ensure that trade flows as smoothly, predictably and freely as possible. The most common trade agreements are concluded in order to reduce tariffs, quotas and other trade restrictions. Various trade agreements are classified by the number and type of signatories, i.e. bilateral and multilateral, based on the level of sophistication, for example (EU) and North American Free Trade Agreement (NAFTA). All agreements concluded outside the framework of the WTO are called preferential. These are also known as regional trade agreements (RTAs). The WTO also provides a legal and institutional framework for the implementation and monitoring of such agreements, as well as for the settlement of disputes arising from their application. The two main functions of the WTO are: it supervises the implementation, administration and operation of covered agreements; and provides a forum for negotiations and dispute resolution. Review and prop...... half of the document ...... The reason for the formation of the Free Trade Agreements and the (EU) is to ensure that there is lip service in the business world and especially among nations involved. They succeeded also because the subjects involved are few and belong to the same region. They are therefore easier to access and conduct negotiations without problems and they have no desire to engage in multilateral agreements as they require long and difficult procedures for their implementation. Organizations must also ensure they have policies that not only foster economic growth but also strengthen the organizations themselves. However, they should find solutions to liberalize trade sectors in such a way that not only member parties that benefit from it, but also external parties can have an influence. They should also work to improve policies that promote democracy for all.