+

The World Trade Organizationby Jaya Chinnaya and Ektaa Sanghvi

+What is the Organization?

Based heavily on negotiations between countries

Gained legitimacy through agreements/contracts members sign to abide by rules of international commerce

Based on the General Agreement on Trades and Tariffs (GATT)

+Age of Organization

Replaced of General Agreement on Trades and Tariffs (GATT) as a result of the Uruguay Round (1986-1994)

WTO created in 1995, GATT created in 1948 between 23 countries

Created GATT More powerful than GATTGATT only regulated merchandised

goodsWTO covers issues such as trade in

services, telecommunications, banking, and even intellectual property rights

+What’s the Purpose of the

WTO? Focuses on trade negotiations, implementation/monitoring, dispute settlement, building trade capacity for developing countries, outreach

Agreements between members are subject to scrutiny by WTO

Helps mediate conflicts in which those involved either want to or do not want to trade

Guarantees no sudden changes in policy amongst countries

Assists in meeting social/environmental objectives

Sometimes rules to maintain barriers if it involves protecting consumers or preventing the spread of disease

+Who’s Involved?

153 members including UK, Mexico, Nigeria, and China 31 observers, including Russian Federation and Mexico 128 GATT signatories joined at the end of 1994

+Advantages of Membership

Maintains peace by helping trade move slowly and trying to deal with disputes

Promotes international confidence and cooperation

Provides a forum for countries to peacefully and fairly deal with disputes

Attempts to lower prices/cost of living by promoting free trade, making necessities cheaper

Provides more choices for products Stimulates economy and raises income, but

requires government to redistribute the wealth because of loss of domestic products

Creates efficiency: Similar rules in many countries makes trading easier

Encourages transparency and ethical practices in both countries involved in a trade agreement

+Disadvantages of

Membership Has been criticized for ignoring the developing countries which increases inequality

Benefits of free trade help developed countries more than developing countries

Imported goods compete with domestic goods and because WTO discourages high tariffs, it can have a negative impact if money fails to be redistributed

Not necessarily democratic because WTO created by and for corporations

May not promote peace because its dominated by businesses in wealth countries

Some say WTO puts corporations before human rights Said to be harmful to the environment because it

attempts to deregulate logging, fishing, water utilities Opposed environmental laws such as U.S. Clean Air Act

+International Impact: China

Joined on December 11, 2001 When it signed off on WTO’s rules, gave up its

previous sovereignty Entry benefitted China greatly, as it made

products even more affordable Reduced tariffs on produce hurt farmers WTO helps China in its rapid economic growth

+International Impact:

Russia Not a member

of the WTO, only an observer nation

Country with the largest economy that is not a part of the WTO

+International Impact: Iran

Not a member nation or an observer nation

+International Impact: Mexico

Member since January 1, 1995

Since WTO review in 2002, organization believes that Mexico made significant progress

85% of trading is with “preferential partners”

WTO believes Mexico should reduce bottlenecks in energy, telecommunications, and transportation

+International Impact: The EU

UK: Member since Jan. 1995

EU: Key player in WTO EU:

Represents/negotiates on behalf of 27 member nations

EU: Seeks to ensure new markets

EU: Observe rules and make sure others play by rules

EU: Promote sustainable entry

+Works Cited

"China - EnchantedLearning.com." 302 Found. Web. 25 Mar. 2012. <http://www.enchantedlearning.com/asia/china/>. "China's WTO Entry of Great Impact." Web. 25 Mar. 2012. <http://www.chinadaily.com.cn/china/2006-12/03/content_749053.htm>. "Council on Foreign Relations." Council on Foreign Relations. Web. 25 Mar. 2012. <http://www.cfr.org/russian-fed/impact-russias-wto-entry-us/p26473>. "Economics Essays: Advantages and Disadvantages of WTO." Economics Essays. Web. 25 Mar. 2012. <http://econ.economicshelp.org/2007/06/advantages-and-disadvantages-of-wto.html>. "Famous Politicians in Funny Makeover......Must See and Enjoy." : Funny, Strange. Web. 25 Mar. 2012. <http://forum.xcitefun.net/famous-politicians-in-funny-makeover-must-see-and-enjoy-t41008.html>. "GATT Research Guide." Web. 25 Mar. 2012. <http://www.law.duke.edu/lib/researchguides/gatt>. "News | FUNNY PHOTOS: Barack Obama Visits the UK." Comedy Central UK and Ireland. Web. 25 Mar. 2012. <http://www.comedycentral.co.uk/news/funny-photos-barack-obama-visit-to-the-uk/>. "Profile: World Trade Organization." BBC News. BBC, 15 Feb. 2012. Web. 25 Mar. 2012. <http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm>. "Putin Shirtless." Web. 25 Mar. 2012. <http://www.defamer.com.au/2009/08/putin-shirtless-again/>. "Top Reasons to Oppose the WTO | Global Exchange." Home. Web. 25 Mar. 2012. <http://www.globalexchange.org/resources/wto/oppose>. "WORLD TRADE ORGANIZATION WTO." SOLAR NAVIGATOR HOMEPAGE INFORMATION PORTAL MARINE WORLD ELECTRIC NAVIGATION CHALLENGE. Web. 25 Mar. 2012. <http://www.solarnavigator.net/venture_capital/world_trade_organization.htm>. "WORLD TRADE ORGANIZATION." WTO. Web. 25 Mar. 2012. <http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm>. "WORLD TRADE ORGANIZATION." WTO. Web. 25 Mar. 2012. <http://www.wto.org/english/thewto_e/whatis_e/who_we_are_e.htm>. "WTO : Why Is It BAD for You?" BreakTheMatrix.com. Web. 25 Mar. 2012. <http://breakthematrix.com/government/wto-bad/>.