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Impacts of WTO on Trading Countries

explanatory Essay
1293 words
1293 words
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Impacts of WTO on Trading Countries

International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick. Regulations and organizations have been established to help everyone get the best deal, such as the World Trade Organization (WTO), but not everyone wants help, especially from an organization that seems to help only the big countries and those they want to trade with. This paper will be discussing international trading with emphasis on national sovereignty, the World Trade Organization, and how the WTO impacts trading countries.
To understand how the World Trade Organization impacts international trading and national sovereignty, we must know what they are and mean to countries. All countries must trade to sustain their people and to get the products they need. It is a known fact that certain countries have what other countries need/want; whether it is natural resources, labor or consumer products. Trading though needs to be regulated, because bigger countries can “bully” smaller less experienced countries. Countries are looking to get the most profit necessary, and with out regulations some countries could take what the need. National sovereignty is when a nation has complete rule over its country or the region in which it controls. When international trading comes into play, that nation’s rule can change, or be changed, to better fit trade agreements, taxes/tariffs, and the sort. National sovereignty is usually bent, even if just a little, to abide to companies within their nation and other trade partners.
To discuss how the World Trade Organization impacts international trading and national sovereignty we must first explain what it is and why it was established in the first place. The World Trade Organization is designed to create the rules involved with trade. These trading rules include all countries, not just the US, and can therefore be a little tricky at times. "The WTO establishes a framework for trade policies, it does not define or specify outcome...

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...end of the stick seem to be the small farms, developing countries, local communities and the environment.
The WTO isn’t a perfect organization by any means, but it does try to regulate tariffs and taxes and occasionally does end up helping a few poor countries out. Without the WTO, would the world be a different place? America needs it, this much we know, but do all the other countries? Many protestors would argue that no, the world does not need the WTO and everyone should stick to its own domestic issues. However, others might say yes, the WTO can be of some use when dealing with particularly remote countries that might not have a chance to trade with anyone else otherwise. In either case the facts have been shown on what the WTO is, why it is here, what it does and how it effects trading.

Works Cited

Bagwell, Kyle & Staiger, Robert W. "A Theory of Managed Trade," American Economic Review. 1990. American Economic Association, vol. 80(4), pages 779-95.

Hoekman, B. “The WTO, the EU and the Arab World: Trade Policy Priorities and Pitfalls.” Centre for Economic Policy. 1995. CEPR.

Paullier, Juan. “In Depth I: World Trade Organization.” Choike. 2004. 04/22/2005.

In this essay, the author

  • Explains the impact of the wto on trading countries, stating that countries fight to get the best deal, creating tariffs and taxes to maximize their profit, and the little producing countries are short-changed.
  • Explains how the world trade organization impacts international trading and national sovereignty, stating that countries must trade to sustain their people and get the products they need.
  • Explains how the world trade organization impacts international trade and national sovereignty. the wto establishes a framework for trade policies, but does not define or specify outcomes.
  • Explains that the rules of trading are simply set as guidelines and cannot guarantee a certain outcome for each agreement between countries.
  • Explains the concept of nondiscrimination in terms of the most favored nation and the national treatment principle.
  • Explains reciprocity is an important part of negotiation where, ideally, each side makes mutual changes in trade policy that bring other changes into play.
  • Explains that enforceable commitments restrict tariffs from going up and down too much. since the wto is an intergovernmental agreement, they can handle their own cases.
  • Explains that transparency is important for the wto because it requires members to publish their trade regulations, establish and maintain institutions allowing for review of administrative decisions affecting trade, respond to requests for information, and notify changes in trade policies.
  • Explains that safety valves are extremely important to the wto for one main reason: the government can restrict trade if they need to.
  • Explains how the wto regulations and meetings affect every nation differently, depending on what each nation needs, has and wants to do. national sovereignty is bent for the equality of trading.
  • Opines that the wto is a bureaucratic metaphor for the power of the world market, which benefits the big corporations and the super-rich, at the expense of workers and poor farmers.
  • Opines that the wto isn't a perfect organization by any means, but it does try to regulate tariffs and taxes and occasionally helps poor countries out.
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