World Fair Trade Case Study

942 Words4 Pages
The World Trade Organization or World Fair Trade Organization? The recalibration for the WTO

At the turn of the 20th century, the WTO helped create prosperity through globalisation and trade liberalisation. After WW2, it was clear that the world required rebuilding to prevent conflict related to resource access and to create prosperity. The main challenge at the time was economic despair. The Bretton Wood Conference gave rise to the IMF, The World Bank, GATT and later the WTO to solve these challenges. The present day has new and more imminent challenges and if they are left unaddressed, they can unravel integration and cooperation as WW1 did. These challenges are mainly; wealth and power inequalities, the environment and shifting comparative
…show more content…
It prevents governments from protecting scarce resources and prevents MEA’s form working. According to Shrybman, countries cannot discriminate between “like products” because of the WTO, this prevents consumers and producers from favouring sustainable goods and governments cannot enforce environmental standards through the precautionary principle. The Tuna-Dolphin; The Salmon-Herring and the Raw Logs Export Controls case studies are examples of this. Jones argues that the “like products rule” is in place because to prevent disguised restriction on international trade. While I agree that environmentalism may be used to cover mercantilist behavior, I disagree that the WTO does not have a role to play in environmental protection. Jones also makes the argument that environmental protections could be made without embargos through eco-labeling. But downloading environmental decisions to the individual consumer is insufficient in so far as it cannot provide the defence systems an institution can from information asymmetries and poverty induced…show more content…
While the top one percent of the globe has amassed an incredible wealth, the bottom ninety-eight percent has seen a fall in wages and living conditions. Serra and Espinosa make the argument that free trade agreements have had favourable effects on Mexican wages and protectionism would lead to high unemployment and keep wages low. Dunkley suggests that labor rights, union recognition, bargaining rights and avoidance of child labor should be implemented but there should be no attempt to forces wages up against supply and demand. It 's clear from statistics that there is a chasm of inequality created through the vehicle of free trade, and this translates into poor human development. Free trade binds fiscal innovation, creating cyclical intergenerational poverty in the global south, but the blame does not fall solely on the WTO? No, governments to have a part to play, as stated by Legrain. Fiscal ingenuity, innovative domestic economic linkages for better paying jobs and democratic representation in WTO are the burden of the local government not of the WTO. Labor rights, however, must be a mandate, if the WTO is to be relevant for the 21st
Open Document