Introduction
Until the end of twenty century, multilateral international trade was functioning without an international organization that coordinate between countries. Some people might justify the role of General Agreement on Tariffs and Trade (GATT) in multilateral trade since the GATT has been providing the rules for the international trading system before the establishment of the World Trade Organization (WTO). However, GATT was only a set of rules set by its trading nations with no institutional foundation, and it did not have the same international influence as other international organizations such as the International Monetary Fund (IMF) or the World Bank (Krueger & Aturupane 1998, p. 1).
Eventually, it all changed in 1994, for the purpose of strengthening the international trading system, the GATT was replaced by the WTO after seven years effort on the Uruguay Round of trading negotiation. As the establishment of the WTO, for the first time, international trading system runs under a solid international organization with a fully legal characteristic (eds Rugman & Boyd 2001). The WTO today is based in Geneva, Switzerland. It consists of 159 member countries with twenty-four countries are the current candidates and eighty percent of current members are developing countries (WTO 2013).
This paper argues that the WTO plays a key role as an international organization on the development of multilateral international trade in terms of laying a foundation of a fair and free world trade system and creating a considerably stable external environment. However, at the same time, there are also several challenges are waiting to be addressed by the organization.
Promote peace and handle disputes
The trading system of the WTO ...
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Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
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The resulting emergency meetings by the WTO raised concerns about whether the WTO can be an effective moderator in such disputes if nations decide to do things unilaterally. In other words, if larger, powerful nations can impose their will whenever they wish, what would be the fate of the poorer or less powerful nations? Even at the WTO Ministerial Meeting in Seattle, Caribbean nations would have likely lost out and gained little from the world trade liberalization agenda of the WTO had the huge public not been able to derail that
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The United States has for over two centuries been involved in the growing world economy. While the U.S. post revolutionary war sought to protect itself from outside influences has since the great depression and world war two looked to break trade restrictions. The United States role in the global economy has grown throughout the 20th century and as a result of several historical events has adopted positions of both benefactor and dependent. The United States trade policy has over time shifted from isolationist protectionism to a commitment to establishing world-wide free trade. Free trade enterprise has developed and grown through organizations such as the WTO and NAFTA. The U.S. in order to obtain its free trade desires has implemented a number of policies that can be examined for both their benefits and flaws. Several trade policies exist as options to the United States, among these fair trade and free trade policies dominate the world economic market. In order to achieve economic growth the United States has a duty to maintain a global trade policy that benefits both domestic workers and industry. While free trade gives opportunities to large industries and wealthy corporate investors the American worker suffers job instability and lower wages. However fair trade policies that protect America’s workers do not help foster wide economic growth. The United States must then engage in economic trade policies that both protect the United States founding principles and secure for tomorrow greater economic stability.
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The GATT grew primarily from a need to reduce or eliminate global tariffs after WWII and oversee the multilateral trading system between multiple countries. After the WTO was created it expanded this role to include lowering trade barriers and become the mediator of global trading disputes and the WTO aims to achieve its goals by non-discrimination, being predictable and transparent, allowing for more competition by discouraging unfair practices, providing assistance to help developing countries, and by protecting the environment, public health, animal health and plant health as much as possible through its
The Uruguay Round in 1993was created to further reduce trade barriers. The result was the creation of the World Trading Organization (WTO). The main goal of the WTO is to police the international trading system. The data that the WTO has kept states that the volume of world trade has grown consistently faster than the volume of world output since the 1950’s. Two other types monitoring policies are the International Monetary Fund (IMF) and the World Bank. The IMF is an international institution set up to maintain order in the international monetary system. The World Bank in defined as an international institution set up to promote general economic development in the world’s poorer nations.
To respond to the challenges and opportunities of WTO dispute settlement, Brazil has developed the “three pillar” for WTO dispute settlement. The structure consists of a specialized WTO dispute settlement division located in the capital, Bras´ılia (the “first pillar”), coordination between this unit and Brazil’s WTO mission in Geneva (the “second pillar”), and coordination between both of these entities and Brazil’s private sector, as well as law firms and economic consultants funded by the private sector (the “third pillar”). This “third pillar” consists of the private sector, which broadly includes business, law, academia, and civil society. Since the WTO’s creation in 1995, Brazilian private sector initiatives have deepened knowledge about international trade issues among a broader array of individuals and groups, who have formed a Brazilian epistemic network, one that is linked transnationally with individuals and groups abroad. Brazilian media, law firms, academia, trade associations, think tanks, consultancies and non-governmental groups have undertaken important initiatives regarding international trade law and policy, which have complemented and built from each other.
2- Organization for Economic Co-operation and Development. (2008, May). The X-Men: The New York Times. Retrieved from http://www.oecd.org/trade/40672245.pdf. 3- Divounguy, O. & Co. 2010 April 6 -.
After the failed International Trade Organization, Rodrik discusses the Bretton Woods Agreement, the transition from the General Agreement on Tariffs and T...
For example, states remain the key negotiators and entities in major global governance entities. Additionally, states retain compulsory power over their subjects or constituents, a form of control that new players in global governments have generally not obtained. Globalization has led to several substantial changes in global governance and the entities participating in governance activities. First, over the past 70 years, an increasing number of nations have signed onto international agreements. For example, when the Global Agreement on Tariffs and Trade (GATT) was created in 1947, it had no institutional structure; by 2009, though, more than 150 nations – accounting for 97% of world trade – were members of GATT’s successor, the World Trade Organization (Fidler, 2009).
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.
International organizations create space for its members to coordinate interests and actions which helps promote interdependent relationships among them and strengthens their legitimacy. As society has progressed, it has globalized, and in the past 50 years states have had to address their growing dependence, especially in the economic sector. The World Trade Organization (WTO), is an institution which has an immense impact on the international political economy and the way states function within the international system. It organizes agreements and treaties which govern how its members decide policies, tariffs, and keeps states accountable for their actions. For example, the General Agreement on Tariffs and Trade (GATT), determines how states can regulate their import and exports. (Hurd 2014,