World Trade Organization

World Trade Organization



World Trade Organization

Assess which issues in your view are causing friction among members of the World Trade Organization, and evaluate how they are likely to be resolved

The influence of the WTO to developing countries has been long debated in society, this paper focuses on the question of whether the WTO has benefited developing countries in their participation in the international market. First, the general context of the WTO is provided, including its history, structure and purpose. And the second part of the article is different arguments to the influences of the WTO to developing countries. These arguments concern three main issues: 1) If developing countries are losing out in world trade 2) If it is true that the markets of developed countries are more closed and protected, and whether developing countries are forced to open. 3) If poor countries are "marginalized" and lack a voice in the WTO. The document also acknowledges that inequality is closed, so a new round of negotiations is necessary. Finally, positively concludes that the WTO has benefited developing countries in their participation in global trade and investment.

General Agreement on Tariffs was replaced by the World Trade Organization in 1995. The next section is to look back the history of the WTO.

global trade and finance system was destroyed in World War II, there was a need to build a new system. Increasingly, politicians wanted to solve problems, including problems of tariffs and trade. Therefore, the GATT was established in 1947. GATT had four fundamental principles and various agreements. (Palmeter and Mavroidis, 1999)

World Trade Organization (WTO)

The World Trade Organization was established in 1995, and replaced GATT. According Dijck & Faber (1996), the WTO provides the all-encompassing trade principles to its members on agricultural products, services, and some important areas related to trade.

Unlike GATT, the WTO is not only an agreement. Moreover, the WTO is an international organization with legal personality, which may restrict trade of the Members of the behaviors that violate WTO principles (Weiss, 1996).

The WTO is an international official. The World Bank and International Monetary Fund is the branch of the WTO. According Palmeter and Mavroidis (1999), the Ministerial Conference is the supreme authority of the WTO. It meets at least every two years. There are three bodies ----- General Council, Dispute Settlement Body and the Review Body Trade Policy, established by the Ministerial Conference. Moreover, the WTO has established a number of other committees. Each committee has a different function to achieve the objective of the WTO.

The purpose of the WTO to implement, administer and operate the rules on trade liberalization, which were agreed and signed by all WTO members. However, Weiss states, "The WTO cental role is to safeguard the interests of the citizens of small countries, both developed and developing countries." (Weiss, 1996, p. 80)

Some people argue that the WTO has protected the interests of developed countries rather than developing countries, resulting in the decline of the participation of developing countries in the world ...