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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.orgwebsite 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
them in the transition by giving special privileges and giving them additional time
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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 successfulnegotiations 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.
WORD TRADE ORGANIZATION AGREEMENTS:
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There are five trade agreements that occurred through the World Trade
Organization that I’m glad occurred:
Goods:
Trade tariffs and productdumping 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 bottominclude 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.
