Role of WTO
Role of WTO
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The Role of the WTO
Trade Negotiations- to promote freer trade
Implement and monitor trade agreements
Settle trade disputes between members
Recruit new members- some countries are not yet members.
Evaluating the WTO-Success or failure
It has promoted free trade and it has done this very well.
Thus countries have benefitted from free trade, such as
Cheaper goods
More choice
Inward investment
bigger markets
Specialisation and econ of scale
Economic growth
But there are criticisms of the WTO. Watch the video and make notes on some of these criticisms.
A summary of these criticisms:
1. It may be hard for LEDCs to compete as their industries are not yet developed
2. WTO has reduced protectionism in manufacturing, but has been less successful at reducing protectionism in agriculture. Guess what LEDCs tend to export?
3. WTO promotes free markets and is against Government intervention - such as nationalised industries providing basic services cheap ( they regard this as protectionism). The resulting privatisation has led to higher prices for basic necessities in LEDCs like water.
4. It does not allow protectionism at all. But what about an embargo on products that are produced unethically by child labour or an embargo on palm oil that destroys the environment.
5. Poor countries can't afford full-time representation at the WTO- so they have less influence.
6. The latest round of WTO- the Doha round started in 2001. It has still not been concluded. It failed to reach agreement on EU and US protectionism of their agricultural sectors.
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