The World Trade Organization
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Transcript The World Trade Organization
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The World Trade Organization
by Jaya Chinnaya and Ektaa Sanghvi
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What is the Organization?
Based
heavily on
negotiations between
countries
Gained legitimacy
through
agreements/contracts
members sign to
abide by rules of
international
commerce
Based on the
General Agreement
on Trades and Tariffs
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Age of Organization
Replaced
of General Agreement on Trades
and Tariffs (GATT) as a result of the
Uruguay Round (1986-1994)
WTO created in 1995, GATT created in 1948
between 23 countries
Created GATT
More powerful than GATT
GATT only regulated merchandised
goods
WTO covers issues such as trade in
services, telecommunications, banking,
and even intellectual property rights
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What’s the Purpose of the WTO?
Focuses
on trade negotiations,
implementation/monitoring, dispute settlement,
building trade capacity for developing countries,
outreach
Agreements between members are subject to
scrutiny by WTO
Helps mediate conflicts in which those involved
either want to or do not want to trade
Guarantees no sudden changes in policy
amongst countries
Assists in meeting social/environmental
objectives
Sometimes rules to maintain barriers if it
involves protecting consumers or preventing the
spread of disease
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Who’s Involved?
153 members including UK, Mexico, Nigeria, and China
31 observers, including Russian Federation and Mexico
128 GATT signatories joined at the end of 1994
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Advantages of Membership
Maintains
peace by helping trade move slowly and
trying to deal with disputes
Promotes international confidence and cooperation
Provides a forum for countries to peacefully and
fairly deal with disputes
Attempts to lower prices/cost of living by
promoting free trade, making necessities cheaper
Provides more choices for products
Stimulates economy and raises income, but requires
government to redistribute the wealth because of
loss of domestic products
Creates efficiency: Similar rules in many countries
makes trading easier
Encourages transparency and ethical practices in
both countries involved in a trade agreement
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Disadvantages of Membership
Has been criticized for ignoring the developing
countries which increases inequality
Benefits of free trade help developed countries more
than developing countries
Imported goods compete with domestic goods and
because WTO discourages high tariffs, it can have a
negative impact if money fails to be redistributed
Not necessarily democratic because WTO created by
and for corporations
May not promote peace because its dominated by
businesses in wealth countries
Some say WTO puts corporations before human rights
Said to be harmful to the environment because it
attempts to deregulate logging, fishing, water utilities
Opposed environmental laws such as U.S. Clean Air
Act
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International Impact: China
Joined on December 11, 2001
When it signed off on WTO’s rules, gave up its previous
sovereignty
Entry benefitted China greatly, as it made products
even more affordable
Reduced tariffs on produce hurt farmers
WTO helps China in its rapid economic growth
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International Impact: Russia
Not
a member
of the WTO,
only an
observer nation
Country with
the largest
economy that is
not a part of the
WTO
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International Impact: Iran
Not
a
member
nation or an
observer
nation
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International Impact: Mexico
Member since January
1, 1995
Since WTO review in
2002, organization
believes that Mexico
made significant
progress
85% of trading is with
“preferential partners”
WTO believes Mexico
should reduce
bottlenecks in energy,
telecommunications,
and transportation
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International Impact: The EU
UK: Member
since Jan.
1995
EU: Key player in WTO
EU:
Represents/negotiates
on behalf of 27 member
nations
EU: Seeks to ensure new
markets
EU: Observe rules and
make sure others play
by rules
EU: Promote sustainable
entry
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Works Cited
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"Council on Foreign Relations." Council on Foreign Relations. Web. 25 Mar. 2012.
<http://www.cfr.org/russian-fed/impact-russias-wto-entry-us/p26473>.
"Economics Essays: Advantages and Disadvantages of WTO." Economics Essays. Web. 25 Mar. 2012.
<http://econ.economicshelp.org/2007/06/advantages-and-disadvantages-of-wto.html>.
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<http://forum.xcitefun.net/famous-politicians-in-funny-makeover-must-see-and-enjoy-t41008.html>.
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2012. <http://www.comedycentral.co.uk/news/funny-photos-barack-obama-visit-to-the-uk/>.
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<http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm>.
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"Top Reasons to Oppose the WTO | Global Exchange." Home. Web. 25 Mar. 2012.
<http://www.globalexchange.org/resources/wto/oppose>.
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<http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm>.
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<http://www.wto.org/english/thewto_e/whatis_e/who_we_are_e.htm>.
"WTO : Why Is It BAD for You?" BreakTheMatrix.com. Web. 25 Mar. 2012.
<http://breakthematrix.com/government/wto-bad/>.