World Trade Organization Essay

By

Andrew JacoGlobal PerspectiveDr. Dennis Barber III

The World Trade Organization tries to accomplish free world trade for

organizations and business around the world between nations smoothly, freely and

predictably by administering trade agreements; getting involved in trade

negotiations; settling trade disputes; reviewing national trade policies; assisting

developing countries in trade policy issues, through technical assistance and

training programs; and cooperating with other international organizations. The goal

is also to improve the welfare of the peoples of the member countries. On the

WTO.org website it shows that the World Trade Organization tries to encourage

countries to not discriminate against its trading partners including its own and

foreign products, services or nationals. The site also states another goal is to have

trade predictability so foreign companies, investors and governments can be

confident that trade barriers would not be raised arbitrarily. Also the organization

tries to discourage unfair trade practices such as product “dumping” by selling

products to an area to not only gain the market share; but to take it all by selling far

below the market in order to put the others in that market out of business entirely

which would be unfair. The organization also functions to reduce or eliminate

tariffs to help the goal for free and fair trading. The site goes on to say that about

2/3rds of the countries that are World Trade organization Members are in the

“developing” into transitioning in to the world markets and the organization helps

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them in the transition by giving special privileges and giving them additional time

to adjust with their help. Finally, the World Trade Organization tries to help save

the environment, health, plant health, and animal health with measures in place.

The World Trade Organization brochure had four sections that were interesting:

THE MULTILATERAL TRADING SYSTEM-PAST, PRESENT AND FUTURE:

What I find interesting and insightful was that the World Trade Organization

along with the General Agreement on Tariffs and Trade (G.A.T.T. - over fifty

years ago) actually helped improve trade and prosperity around the world whereby

the total trade in the year 2000, for instance, was twenty two times the trading level

of 1950. An example if this is the successful negotiations in 1997 to eliminate

tariffs in information technology products, banking, insurance, securities and

financial information. The future would be to negotiate and to work on a wide

range of issues raised by developing countries in the difficulties they face in

implementing the World Trade Organization agreements.

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WORD TRADE ORGANIZATION AGREEMENTS:

There are five trade agreements that occurred through the World Trade

Organization that I’m glad occurred:

Goods:

Trade tariffs and product dumping became more of a thing in the past.

Services:

Services such as banking and insurance, etc. can now enjoy the same trade

agreements that goods are now getting.

Intellectual Property:

Designs, patents, trademarks, trade secrets, etc. are protected internationally.

Dispute Settlement:

Countries can settle their differences through consultation, and it that does not

work they can get a ruling by a panel of experts form the organization with a

chance to appeal under legal grounds if that does not work. All of this is to insure

trade flows smoothly.

Trade Policy Review:

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The review is to create a greater understanding of the trade policies that

countries are adopting see the affects and impacts when followed. Any of the

members offer feedback and input to the World Trade Organization Secretariat to

help make any policy adjustments for the country or countries concerned.

DEVELOPING COUNTRIES:

Development and Trade:

The World Trade Organization can become the great equalizer in helping the

developing countries (which make up about 2/3rds of the total World Trade

organization membership) get equipped and getting the hand up to be able to

compete in the global market place by extending deadlines to get ready to

implement the new trade agreements and to get help in building the trading

infrastructure by getting additional preferential market access agreements.

Technical Assistance and Training:

With internet access and technical cooperation missions to developing

countries, they will get the training and seminars as well as online forms to help

get equipped to trade.

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THE ORGANIZATION:

Structure:

The impressive organization got started in January 1995 and has 160 members

from around the world accounting for about 95% of the world trade. The decisions

are made by the entire membership typically by consensus and the World Trade

Organization agreements have been ratified in all of the members’ parliaments.

The trade decision levels from top to bottom include at the top is the Ministerial

Conference, next is the General Council which meets as a Trade Policy Review

Body and the Dispute Settlement Body, next is Goods Council, Services Council,

and Intellectual Property Council that all report to the General council, finally there

are the comities that work with the councils.

Secretariat:

The World Trade Organization Secretariat, based in Geneva, with around 640

staffers is headed by a director general provides technical support, legal assistance

for trade disputes for the councils and their committees for the developing

countries while explaining the organizational affairs to the general public while

under an annual budget of about 197 million Swiss francs.

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I have some thoughts on the World Trade Organization’s general idea of freer

trade. At first I was skeptical about the organization because of the disparity of

wealth around the world. As more countries around the world develop more

economically because of globalization, the World Trade organization has and will

be an instrument to help those developing countries. My conclusion is that if your

country is not a member, you will be left out of international trade and will be the

economic loser more than ever. As more countries take advantage of their support

and training programs for developing countries, they will feel the effects of what I

called the organization as a good economic equalizer in helping the developing

countries to trade just as effectively and smoothly as the rest of the developed

countries. As I eventually start a business are lead another one and the company is

not trading out of the US, I know what organization to call to get the help to

expand the business overseas as well as utilize resources around the world for

materials and labor, etc.

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References:

www.WTO.com for the purpose and the goals.

World Trade Organization Brochure link:

www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htm

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