Creating the International Trade Organization

In the late 1940s, US State Department officials began campaigning for the establishment of an International Trade Organization (ICO). This new organization would oversee global negotiations on trade liberalization, foreign direct investment, cartels, and commodity agreements; and it would complement the IMF and the World Bank, both founded at the 1944 Bretton Woods Conference to manage international financial flows. Together, the IMF, the World Bank, and the ITO would form a comprehensive system for the management of international economic affairs. However, it turned out that the proposed ITO proved extremely controversial both in the United States and around the world. When President Truman finally sent the OIC Charter to Congress in 1949, lawmakers had to decide whether to approve this product of three years of intense international negotiations or simply use it in Washington, D.C.

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