Difference between revisions of "Influence of the World Trade Organization (WTO)"

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==References:==
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*[1] [http://www.oxfam.org/eng/pdfs/doc_030617_kspeech_wtosympo.pdf Foreign direct investments and the World Trade Organisation (WTO): myths and realities]
*[2] [http://europa.eu.int/comm/external_relations/us/economic_relations/ The Eu's relation with the United States of America]
*[3] [http://en.wikipedia.org/wiki/World_Trade_Organization World Trade Organization]
*[4] [http://www.intracen.org/]
*[5] [http://www.tradeobservatory.org/]

Latest revision as of 19:14, 2 May 2010

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Enablers:

  • Good cause: The objectives of the WTO look honourable.
  • EU-US trade relationship: Most trade is done between those regions
  • Greed:
    • Large Multinationals: WTO rules favor large multinationals
    • Rich countries: WTO rules favor the richer countries
  • Forced membership: Not being a member of WTO severly limits your trade capabilities (embargo)
  • Globalization

Inhibitors:

  • Unfair treatment: Third/second world countries feel exploited by some WTO regulations.

e.g. Protection of the rich: Sugar import taxes, being above 110% (150% in some countries) in many large rich countries like the US, whilst sugar import taxes in most poor nations were just 20%. The WTO actually insisted those poor countries to drop their import taxes.

  • Return to protectionist measures as a result of financial downturn. Protectionist measures aimed at national/regional constituencies can threaten the free movement of goods (e.g. by imposing import duties)
  • Anti-globalization movement http://en.wikipedia.org/wiki/Anti-globalization_movement

Paradigms:

  • Before: International trade was severly limited by local government rules
  • After: International trade is easy now because consistent rules are made internationally.


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