World Trade Organization - Assignment Example

 World Trade Organization Introduction Following your request on the origin, functions and disputes settled by the World Trade Organization (WTO), and the evaluation of the organization, I would like to represent these details. Background The World Trade Organization (WTO) was officially established or created on January 1, 1995 as the legal and institutional foundation of the international trading system. It is comprised of about 180 member countries (Buterbaugh, 2008). The members commit to follow and stick to the trade rules set by the organization. The organization was created under the Marrakech agreement to replace the General Agreement on Tariffs and Trade (GATT) which came into existence in 1948. However, it is important to note that although replaced, GATT still exists as a treaty for trade goods in WTO. The creation of WTO was as a result of the 1986 to 1994 GATT’s Uruguay round negotiations (Aaronson, 1996). Since its inception, there have been many reforms in the world trading system. The WTO provides the framework by which governments create and implement legislations and regulations for domestic trade. It also provides the platform on which countries develop and improve trade relations amongst (Buterbaugh, 2008). The Purpose or Functions of the WTO The main objective of the WTO is to assist in making the flow of trade smooth, free, fair and predictable. It does this by: Administering trade agreements The organization is responsible for facilitating the implementation, operation and attainment of the objectives of the trade agreements (Hajnal, 2001). Acting as a forum for trade negotiations The organization provides it members with a forum for negotiating their multilateral trade relations in accordance to the rules and regulations of WTO. It also provides them with a framework for which they can implement the outcomes of such negotiations as per the decision of the ministerial conference (Hajnal, 2001). Handling trade disputes WTO is responsible for settling any trade disputes that may exist among its members. It encourages its member states to settle their disputes through consultation. Nations that feel their rights under the agreement are a bused can report the dispute to the WTO. The organization can then interpret and analyze the agreements and make a judgment. It also assists its members in understanding of the rules and regulations governing dispute settlement (Macrory, 2005). Reviewing national trade policies The organization periodically reviews the trade policies in order to improve transparency, understanding of the adopted policies and evaluate the impacts of these policies among its members. The review also acts as a constructive feedback to the policies of many member countries (Macrory, 2005). Assisting developing countries in trade policy issues, through technical assistance and training programmes The organization provides provisions that encourage developed nations to assist trade of developing countries. Developing nations are provided with transition periods to help them adjust to the more difficult provisions of the WTO. In addition, they are also given flexible market access concessions for their products (Macrory, 2005). Cooperating with other international organizations The WTO cooperates with other international organizations such as the International Monetary Fund (IMF) and International Bank for Reconstruction and Development (World Bank) to achieve greater coherence in making international economic policies (Hajnal, 2001) . Taking a Trade Dispute to the WTO The world trade organization procedures for resolving trade disputes are very important in ensuring that trade occurs smoothly. A dispute only occurs when a member state believes that its rights are violated by anther country as per the agreement made in the WTO. It is the responsibility of the Dispute Settlement Body (DSB) to solve disputes among the members of the organization. The body is made up of all WTO members and has the authority to create panels of experts to handle the cases brought before it. It also has the authority to accept or reject the findings of the panel or appeals made (World Trade Organization, 2008). When a dispute occurs, the countries or parties involved are required by the laws of WTO to first conduct bilateral meetings between themselves and try to solve their differences. The meetings are often conducted by representatives of the respective countries in Geneva. However, incase the countries fail to settle their differences in these meetings, the WTO Director General is allowed to use mediation to settle the dispute. If both the meetings and the director general fail to come up with a solution after 60 days, then the complainant can request the Dispute Settlement Body to create a panel that can examine the issue. The dispute settlement body then constitutes the panel within 30 days of its creation (World Trade Organization, 2008). After the filing the case, both the parties involved submit their arguments and facts to the panel before the first substantive meeting. At the first meeting, the complainant, the accused and the parties interested in the matter present their cases or views. However, formal rebuttals are arrived at during the second substantial meeting. The panel analyses the findings and if it finds the complaints of the complainant to be legitimate or true, it recommends the solutions and suggest ways in which they can be implemented. The DSB adopts the report of the panel and ensure that it is implemented (World Trade Organization, 2008). An Example of a Trade Dispute Brought To the WTO and Its Outcome Since its creation, the WTO has received many cases as compared to GATT. Though it not settled all of them, it has settled most of them. One of the cases it has solved is the Shrimp-Turtle Case. The Shrimp-Turtle Case was a case brought to the WTO by four Asian countries (India, Pakistan, Malaysia and Thailand) against the United States after the later banned imports of shrimp from them. The US argued that the methods that the four countries were using in catching the shrimp harmed endangered species of sea turtles. The four countries launched a complain against the ban to the WTO but in their ruling, both the panel and the appellate body found the ban to be legitimate under WTO laws. The bodies argued that according to international laws on environment, the US had not infringed the rights of the four the countries (World Trade Organization, 2008). An Evaluation of the WTO'S Overall Progress toward Its Goals In spite of a few cases, since its creation, WTO has effectively achieved its goals. Through administering trade agreements and offering a forum for trade agreements it has ensured that trade flows smoothly. The WTO has also received over 300 trade disputes since its creation as compared to GATT which never received anything close to this number. In addition, out of the over 300 cases, the WTO has solved about 150; a good indication that it can solve most of trade disputes. The organization has also promoted free trade among its members; it has freed up international trade through globalization. Therefore in regard to achieving its goals, the WTO can said to have attained most of them (Macrory, 2005). References Aaronson A. Susan (1996). Trade and the American dream: a social history of postwar trade policy. University Press of Kentucky. Buterbaugh Kevin and Richard M. (2008). Fulton. The WTO primer: tracing trade's visible hand through case studies Palgrave Macmillan Hajnal I. Peter (2001). International information: documents, publications, and electronic information of international governmental organizations. Libraries Unlimited, Macrory F. J. Patrick, Appleton Edmond Arthur, Plummer G. Michael (2005). The World Trade Organization: legal, economic and political analysis, (Volume 2.) Springer. World Trade Organization (2008). Understanding the WTO. World Trade Organization. Read More