This website uses cookies to ensure you have the best experience. Learn more

The World Trade Organisation (Wto) Essay

2657 words - 11 pages

Cases in the Global Business Environment
The World Trade Organisation (WTO)

It has been suggested that “of all major economic institutions, the WTO has the worst reputation”. Outline the role of the WTO, and explain why it has proved difficult to reach agreement in recent WTO meetings in Doha, Geneva and Hong Kong.

The World Trade Organisation (WTO)

The WTO was founded in 1995 after the 8 year Uruguay round of talks, and it succeeded the General Agreement on Tariffs and Trade (GATT) created in 1947. Most of the WTO's current work comes from the Uruguay Round of negotiations (1986-1994). Headquartered in Geneva, Switzerland, the WTO has 151 members (as at 27th July 2007), ...view middle of the document...

The WTO is also responsible for negotiating and executing new trade agreements and is also in charge of policing the adherence by its members.
Over three quarters of WTO members are developing or least developed countries, and WTO agreements contain special provision for them. These include longer time periods to implement agreements and commitments, measures to increase their trading opportunities, and infrastructure support.

The principles and objectives of the WTO try to emphasize the benefits for all its members, and with 150 of them and 30 others negotiating membership, the vast majority of the world’s nations therefore believe in the organisation. However the organisation still has a bad reputation with most criticism from people worried about the effects of free trade and globalisation. While the WTO pushes the implementation of its objectives and policies, questions are still raised about the absolute cost of free trade especially on poor countries, and the environment.
There is the perception that the organisation is run by the rich countries, for the rich countries and worsening the situation of the poor and this ‘free trade’ certainly isn’t free. For example in 2005, US customs officials collected $280 million on Cambodia’s modest $1.8 billion in exports – nearly as much as the $350 million on $34 billion worth of French exports. Developing countries increasingly have to give up safeguards that developed nations had during their early stages of growth. The International Monetary Fund (IMF) admitted that forcing free trade onto developing countries does not work and would actually increase the risk of financial crisis.
One major contentious issue is about subsidies by rich countries to their farmers. The WTO is criticised for allowing these countries especially in the European Union (EU) and United States (US) to allow payments of subsidies to their farmers, while tariff protections which are a key source of income for farmers in developing countries have been reduced in the same period. EU olive-oil subsidies for example pay Spanish, Greek and Italian growers $2.5 billion a year to produce, more than double the value of the world’s olive-oil trade. This prevents Moroccan and Tunisian olive oil, dubbed the world’s best extra virgin oil from appearing in any Western stores.
The WTO is considered too powerful and its decisions are absolute and member nations must abide by its rulings. The WTO is able to enforce its decisions by imposing trade sanctions against countries that have breached the rules. In one case in the long running EU-US trade battles, a decision was made that that the EU could impose sanctions of $4billion on the United States. This related to special tax concessions enjoyed by American Multinationals, and which the WTO judged constituted unfair competitions.
Over 300 cases have been brought before the WTO by member states, under its dispute settlement system since 1995. This may be considered a sign of...

Other Papers Like The World Trade Organisation (Wto)

History Of GATT And WTO, Its Difference And Advantages To US

923 words - 4 pages History of GATT and WTO, its difference and advantages to US.GATT:After World War II, representatives of the US and its Allied Forces attempted to work out the arrangements for the post war era. General Agreements on Tariffs and Trade (GATT) was formed by an International conference held at Geneva in 1947. The US initiated negotiations with 22 other countries that led to commitments to regulate different tariff rates. GATT was formed as an

WTO Essay

1316 words - 6 pages and trading alliances can be large-scaled such as the global agreement World Trade Organisation (WTO), the smaller scale regional agreements such as the European Union (EU) as well as agreements between two specific countries such as CERTA - Closer Economic Relations Trade Agreement between Australia and New Zealand. They all have the aim of reducing barriers to trade between countries, a process described as trade liberalization.ConclusionIn


1883 words - 8 pages GATT (General Agreement on Tariffs and Trade) 1947 and the WTO (World Trade Organization) 1995 as well as the ongoing opening and privatization in Eastern Europe are only some examples of latest developments. 3) Market drivers As domestic markets become more and more saturated, the opportunities for growth are limited and global expanding is a way most organizations choose to overcome this situation. Common customer needs and the opportunity to

The Wto Is an Organizational and Legal Framework of International Trade4

2657 words - 11 pages Nowadays, in our world there are lots of international trade and economic organizations with a wide and narrow participation. However, a major role in shaping trade flows, and setting the rules for the introduction of international business plays the World Trade Organization (WTO). In this essay I am going to write about the WTO, its structure, advantages and disadvantages of its rules among different countries. In addition I am going to

World Trade Organization

5012 words - 21 pages [pic]World Trade Organization [pic] The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for

Evaluate the Role of Different Global Organisations in Narrowing the Development Gap

535 words - 3 pages Evaluate the role of different global organisations in narrowing the development gap (15) Global organisations are key players who have range of impacts on the development gap they can narrow or widen the development gap. They are for example NGOs, WTO, IMF, TNCs, World Bank and governments. The WTO (world trade organisation) promotes trade and economic cooperation between countries. Groups of countries that promote free trade are for example

World Trade Organization

413 words - 2 pages The World Trade Organization is the only international organization that handles the global regulations of trade between all nations. Its main purpose is to make sure that all trade has a smooth transition as freely as allowed by law. This gives piece of mind to all the consumers and producers around the world. This organization provides a safe and secure gateway for all its members’ and their markets. The rules and decisions made by the WTO


338 words - 2 pages Horsemen of the Apocalypse': Critical Literature on the World Bank, the International Monetary Fund and the World Trade Organisation. European Journal Of Development Research, 16 (3), 737-745 Marquette, H. A. (2004). Unholy Trinity: The IMF, World Bank and WTO (Book). Journal Of Development Studies, 40 (3), 179-180 Sergi, B. S. (2005). International Organizations and Global Affairs. Global Economic Review, 34 (3), 345-354.

World Trade Organization

2992 words - 12 pages Introduction The World Trade Organization (WTO) was established January 1, 1995. Before WTO’s inception it was known as the General Agreement on Tariffs and Trade (GATT). However, GATT was not treaty, therefore “the provisions of GATT were binding only insofar as they are not inconsistent with a nation’s existing legislation” (Aaronson, n.d.). Many proponents of labor sometimes consider the WTO a very controversial organization. Many labor

International Trade Debate Part I

520 words - 3 pages cost in all countries involved. In turn, lower production costs lead to increased competition between countries to improve production standards and increase production performance to maintain competitive prices. Accordingly, each country gains political and economical advantages through unrestricted international trade.Though there are several inadvertent disadvantages to unrestricted international trade, the World Trade Organization (WTO) is

World Trade Organization - 2984 words

2984 words - 12 pages are: Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Surinam and Trinidad and Tobago. World Trade Organization The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement

Related Essays

World Trade Organisation Assignment

1429 words - 6 pages world trade organisation | SHIRISH SAWANT 321618 | world trade organisation | SHIRISH SAWANT 321618 | WORLD TRADE ORGANIZATION: INTRODUCTION: * WORLD TRADE ORGANIZATION (WTO) is an organization which was established with the motive of negotiations between the countries regarding trade problems. * WORLD TRADE ORGANIZTION was established on 1st January 1995 after the failed attempt made in 1948 to make

World Trade Organisation Essay

3071 words - 13 pages The world trade organization is an organization can be looked at in a number of ways; firstly the WTO is an organization for trade opening; a forum where governments discuss trade agreements; and as platform for solving trade disputes. Further on, the WTO functions as a system of trade rules and as a place where member states sort out their trade issues among themselves. This organization was founded out of negotiations and its modus operandi is

Global Outsourcing And The World Trade Organization

2000 words - 8 pages economy.The WTO continues the efforts of NAFTA to help negotiate free trade around the world. It consists of 148 countries who agree to keep their trade barriers low to encourage trade on a global level. The WTO assures its members that they will be able to have "secure supplies and greater choice of the finished products, components, raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them

The Failures Of Environmental Multilateralism Demonstrate The Need For A World Environment Organisation

2705 words - 11 pages ‘The failures of environmental multilateralism demonstrate the need for a World Environment Organisation.’ Critically evaluate this claim. One of the main challenges that face environmental politics today is a significant lack of integration between the global governance structures that address ecological matters. The international trade system has some of the most powerful institutional actors, such as the World Trade Organisation