Introduction Background to the study The World Trade Organization (WTO) has been successful for the past decades of its operation. According to Jeffrey (n.d, p.3), during its formation, WTO was much more similar to the existing trading body referred to as the General Agreement on Tariffs and Trade (GATT). As a trading body, GATT was in control of the world trade since 1940’s. GATT was formed in 1947 with the objective of reducing trading tariffs amongst the existing members. According to Meredith (2003, p. 43), there was an increase in GATT membership over the years. Meredith asserts that this was due to its success in reducing the existing barriers to international trade. GATT members continuously met in what emerged to be known as ‘ negotiation rounds’ . The objective of the negotiations was to strategize on how to further reduce the maximum tariffs which a particular member country could impose to other members in relation to imports. Reduction in tariffs culminated into an increase in the volume of trade. However, there were problems which existed amongst the member of GATT which culminated into formation of WTO. Currently WTO has facilitated a 50 year period of international trade negotiations in GATT which had formulated comprehensive trading rules and liberalized trade. Upon its formation in 1995, WTO’s objective was to ensure that trade f lows as smoothly, predictably and freely as possible. This would be achieved through incorporation of free trade policy. Free trade policy entails a trading system that enables traders to operate without government interference. This would greatly promote trade through a liberalized trading system which would culminate into global economic growth. In addition, the operation of WTO is aimed at fulfilling a number of roles which include improving the citizen’s welfare of its member sates, formulation of goods and services treaties, dispute settlement, policy reviews and their periodic scrutiny, trade and development, technical assistance and training. The institution is also aimed at fulfilling a number of functions. These include administration of trade agreements, settling trade disputes, attaining international cooperation with various international organizations, review of national trade policies. The trade institution is based on three main pillars. These include stimulating trade in goods (GATT), services (GATS), and intellectual property rights (TRIPS). According to WTO organization chart (Anon., 2005); the trade institution has a comprehensive structure with a membership of 150 countries. These countries account for approximately 97% of the total world trade. Decisions in WTO are made through a consensus process amongst the entire membership and approved by the individual national governments. The top level of decision making consists of the Ministerial Conference which meets bi-annually. Next are the General Council, Goods Council, Services Council and the Intellectual Property Council which reports to the General Council. Despite the increment in world trade through WTO, there are a number of factors that hinder WTO in attaining its objective. This paper is a research report on the operation of WTO. Aim The report aimed at analyzing the factors that impede WTO in facilitating effective, smooth, predictable and free flow of trade. Scope The pap