+ The World Trade Organization by 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 ( ) WTO created in 1995, GATT created in 1948 between 23 countries Created GATT More powerful than GATT GATT only regulated merchandised goods WTO 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 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

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