This website uses cookies to ensure you have the best experience. Learn more

World Trade Organization Essay

1438 words - 6 pages

Although there are many famous riots and controversies connected to the World Trade Organization (WTO), most American citizens don’t know what the WTO actually is or what it does. Because there’s so much the average person doesn’t understand, we need to look at the background of the WTO before we can discuss any further details; then we will look at possible explanations of why people protest, and finally we’ll focus on whether or not any protests were justified.
     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 outcomes" (Bagwell, K. and Staiger, R. W. 2002). As we can see, the rules of trading are simply set as guidelines and cannot guarantee a certain outcome for each individual agreement between countries. There are five main rules that the WTO depends on to operate smoothly on a daily basis and they are as follows: nondiscrimination, reciprocity, enforceable commitments, transparency, and safety valves. First, we will look at nondiscrimination. There are two main concepts to understand when looking at the nondiscrimination rule: Most Favored Nation (MFN) and National Treatment Principle (NTP) (Hoekman, B. 2001). MFN involves one country, usually a larger, more developed country, deciding that it wants to trade with another country, usually a smaller country, and give them certain benefits that other countries might not get because the bigger country doesn’t like them as well. For example, if England decided that it wanted to trade with Australia, but didn’t want to have as much of a dependency on the US, it could make exporting and importing more beneficial to Australia by overlooking tariffs and taxes it might impose on the US. National Treatment Principle can be best explained in terms of goods being treated equally, regardless of the origin of the product. For instance, if Florida wanted to sell its bananas to Oregon and so did Australia; Oregon wouldn’t be able to impose a tax on the bananas from Florida unless it imposed the same tax on the ones from Australia. This rule it supposed to keep trading fair between nations.
     Second, reciprocity is an important part of negotiation where, ideally, each side makes mutual changes in trade policy that bring other changes into play, which affects the amount of imports and exports each country is allowed to handle (Bagwell, K. and Staiger, R. W. 2002). An example might be when France meets with Spain to negotiate terms for their blossoming lily industry; each country might have a few trade concessions in mind and work to create a balance between them. Third, we will consider how “enforceable commitments are crucial in ensuring market access commitments are implemented and maintained” (Hoekman, B. 2001). They...

Find Another Essay On World Trade Organization

China Enters the World Trade Organization

1008 words - 5 pages significant given that China is and will most likely linger a major goal for direct investment in the world. However, the entry of China in world’s main international trade business is contributing a lot to the opening of overseas capital, highly developed experience, in addition to organization proficiency addicted to the enterprises of Chinese, in totaling up altogether, it would give forward motion to technological novelty and structural modification in the enterprises of the Chinese. References http://english.peopledaily.com.cn/special/WTO/2000031400W103.html http://www.8thnetwork.com/translation.html http://www.wto.org/english/news_e/pres01_e/pr243_e.htm

Benefits of the world Trade Organization

1020 words - 4 pages Benefits of the World Trade Organization      One of the biggest firms associated with globalization is the World Trade Organization. The World Trade Organization is the only international body that deals with the rules of trading between nations. It has evolved over the past half century into an entity that contract with the trade of services, intellectual property as well as its original intent of the trade of

Lebanon Should Join The World Trade Organization

1511 words - 7 pages This article is a strong recommendation to the country of Lebanon to join its Middle Eastern neighbours by becoming a member of the World Trade Organization. The WTO is an organization that helps advise, regulate, and supervise countries around the world with their import and export trading. Officially recognized by the world and established at the beginning of 1995, the WTO has been the stage for all countries to come together and abide by

Taiwan's Application to the World Trade Organization

1063 words - 4 pages Taiwan had first applied to join the General Agreement on Tariffs and Trade (GATT) on January 1st, 1990, under the label of “the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu.” Under this label, Taiwan was applying to the World Trade Organization (WTO) as an independent member, a fresh new applicant with out any other nation sponsoring its’ membership. Therefore, in order to successfully gain membership into the WTO, Taiwan had

China and the World Trade Organization

773 words - 4 pages Why did China’s leaders place so much importance on the accession to WTO? The most widely cited reason for China’s push to join is to keep the process of reform going. In many ways, the WTO membership was the best way for China to hold economic growth. The world economy has become much more complex and interdependent, and China's participation - based on the rules of international trade - was essential for China and for the rest of the world

Utilitarianism in the World Trade Organization

2891 words - 12 pages of satisfaction among individuals is still considered utilitarian. An example of rule utilitarianism might be the duty to serve others (intent to do the most good for the most amount of people), but providing poor service to those individuals (failure to provide maximum satisfaction to them). Here, the rule that others be served is utilitarian. The next item to be addressed is the World Trade Organization, mainly its purpose, its structure

World Trade Organization: An Advocate For The Poor

1468 words - 6 pages The World Trade Organization is an international, multilateral organization setting policies for the global trading system. It settles trade disputes between its member states - one hundred and forty nine in number - and is a successor to the General Agreement on Tariffs and Trade, which was dissolved in the year 1995 to give birth to the World Trade Organization in its stead All of the principles and agreements of the General Agreement on

International Relationships Comparing United Nations and World Trade Organization

483 words - 2 pages International Relationships TableInternational RelationshipsResources:United Nations: www.un.orgWorld Trade Organization: www.wto.orgComplete both Part A and Part B.Part A:Complete the table below for both the United Nations and World Trade Organization by providing a description of the Purpose, Major Functions, and Current Members for each organization.Part B:Answer this question:Select one organization; the United Nations, or the World Trade

The Founding of and Debate Over the World Trade Organization

1672 words - 7 pages Although the past decade has carried a great deal of news and coverage of the World Trade Organization (WTO), few people are truly aware of the organization’s function or the scope of its mission. It often appears to be just another one of the structureless bureaucracies that handle the details of todays modern life. However, the WTO is involved in issues ranging from disputes over steel manufacturing in Japan to China’s telecommunications

Role of the World Trade Organization in Multilateral International Trade: An Evaluation

1056 words - 5 pages Introduction Until the end of twenty centuries, 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

General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO) and Jordan's benefits in becoming a member

1447 words - 6 pages IntroductionGATT is the only global international organization dealing with the rules of trade between nations, which is known today as The World Trade Organization (WTO). At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.The WTO basic functions:* Administering

Similar Essays

The World Trade Organization Essay

1351 words - 5 pages World Trade Organization Different countries and regions of the world have relationships based on global and international trade through trading organizations. World Trade has been a crucial part of the economy and many different programs have tried to find an effective way for free trade to occur. Based on previous programs since 1914, and new goals formed recently, the World Trade Organization has found the most powerful and effective way

The World Trade Organization Essay

1196 words - 5 pages WTO’s rules. Nevertheless, the gravity of the disadvantages outweigh and outnumber a few of the organisations’ success stories. To conclude, the World Trade Organisation has neglected to abide by it’s commitments made over the past 10 years which results in increased problems in the world today. Works Cited "10 Benefits of the WTO Trading System." WTO. World Trade Organization, n.d. Web. 01 May 2014. "Case Studies | Global Exchange

World Trade Organization (Wto) Essay

3569 words - 14 pages INTRODUCTIONThe World Trade Organization (WTO) is the sole international organization dealing withmultilaterally agreed rules on trade among its member countries. Through WTO agreement, which spell out rights and obligations, member countries operate a nondiscriminatory multilateral trading system that has allowed world trade to grow. The goal is to help producers of goods and services, and exporters and importers, conduct their business in a

Labor And The World Trade Organization (Wto)

3406 words - 14 pages Labor and the World Trade Organization (WTO) Seven years of trade negotiations at last gave birth to the World Trade Organization (WTO) in 1995, the U.S. labor movement was one of its leading skeptics. A world trade organization, labor supporters argued, would only accelerate the headlong rush to laissez-faire by dismantling national regulations. It would overwhelm attempts by nations to defend living standards and the ability of unions to