Influence of the World Trade Organization (WTO)
- Good cause: The objectives of the WTO look honourable.
- EU-US trade relationship: Most trade is done between those regions
- 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)
- 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
- Before: International trade was severly limited by local government rules
- After: International trade is easy now because consistent rules are made internationally.