Roles of the Nation-State Government in Organization of WTO - Coursework Example

ROLES OF THE NATION-STATE GOVERNMENT IN PROMOTING INTERNATION TRADE AND ORGANIZATION OF WTO AND EUROPEAN UNION 27th November, 2008 ROLE OF NATION-STATE GOVERNMENTS IN ORGANIZATION OF WTO The World Trade Organization founded in the year January 1995 is a major influencer in the area of global governance. Its regulatory structure covers almost 140 sovereign states in totality, due to its rules and regulations; it has been under controversy related to the areas which are beyond the realm of traditional trade policy (Sampson P C, 2001). The establishment of WTO was mainly done to ensure a smooth flow of goods by appropriate negotiation of trade agreements between different member nations and settlement of disputes. The organization also aims to assist developing countries to formulate there trading policies and effectively deal with the related issues and the training programs also. The nation-states have a vital role to play in realizing and implementing the functions laid by the WTO on the whole. It cannot be denied that the governments of dominant capitalist countries or the nation-states and their representatives, are responsible to determine the neo liberal politics of the WTO. These nation-states make use of their power and the military mechanisms for instance NATO, the North American nation state is an apt example to display the unique power that the super power holds in the modern era to implement the economic, political and military domination. In accordance with GATT prototype, the rule and policy formation in the WTO requires an active involvement of all member nation-states, especially institutionalized international relations. In the current scenario WTO and the various agreements made on the open capital markets, permit a free flow of goods and capital but believe in maintaining a very thin line of governmental intervention. Under the government structure created by the WTO, nation-states have been liberalized to draft their policy regarding the social issues. On the whole the WTO promotes beneficial jurisdictional competition among the nation-states. Today, in the organization of WTO, a system of international federalism is supported (McGinnis O J, 2004). Still the intervention of the international governance is not encouraged to a high extent in order to conserve the centralized decision making by the WTO especially in matters regarding the polcied for tariff reductions so that the nation-states do not build up discriminatory barriers. However, the nation-states do hold the power to carry on domestic regulations that are related to their individual development levels and structures holding on their uniques cultural , social and ethical values and preferences of their national citizens. The open trading system , the capital markets and the internation trading agreements and traties regulated by the WTO restrict and pose constraints on the nation-states to use their powers for personal gains or unethical reasons hamering the growth of other nations. Further negative interests such as wealth destroying norms are also controlled by jurisdictional competition (McGinnis O J, 2004). Today, the WTO reproduces that system on the international level. There is a relatively thin international governance structure with the authority to make centralized decisions regarding the policing of tariff reductions to ensure that nations do not put up discriminatory barriers. Nation states still have the power to make domestic regulations that depend on their respective levels of development and the values and preferences of their citizens. Yet the open trading systems and capital markets facilitated by the WTO and international finance agreements restrain these nation states from using their powers unwisely. The emerging new form of global governance through a major propogation of interrelateness and interconnections of various national governments, there is a clear indication of the reduced role of nation-states which is only specific to the geographical boundaries now. Though the nation-states continue to exert some infuence on the political and economic developments of the nations, yet the major power or control is vested in the WTO which certainly provides a platform for the nation-states to function and remain in action. Today, the WTO reproduces that system on the international level. There is a relatively thin international governance structure with the authority to make centralized decisions regarding the policing of tariff reductions to ensure that nations do not put up discriminatory barriers. Nation states still have the power to make domestic regulations that depend on their respective levels of development and the values and preferences of their citizens. Yet the open trading systems and capital markets facilitated by the WTO and international finance agreements restrain these nation states from using their powers unwisely. ROLE OF NATION-STATE GOVERNMENTS IN ORGANIZATION OF EUROPEAN UNION The modern state in the current times is confronted by two major threats which require an in-depth understanding of globalization and functional differentiation. The nation-state is under severe pressure to adapt themselves with the new international trading arrangements. Under such a condition the European integration has been an important source to draw out the incompetence and shortcomings of the key elements of the democratic setup which is beyond the reach of the nation states for instance sovereignty of the people. The EU is an association of varied people, based on the fundamental values of creative freedom, irrespective of the size of the population or the economic power held by the nation. The European Union is nothing but a measure taken to adapt to the changing trends in the Western Europe. Apart from this EU also aims to protect the rights of the nation-states and their involvement in promoting and accelerating economic growth and political stability. The conception of the European Union has affected the nation-states as more and more competences have drifted away to the European level resulting in an ambiguous system of governance that has brought out a complete transformation in the legal and political system of the nation-states. As far as the European Union is concerned, Individuals are able to attain there authoritative representation but ultimately in order to gain a consultative representation they have to contact their nation-state government; representing the EU demands on the institution and the organization posed by the direct and the indirect interest-groups. The nation-state hold a firm position in the organization of EU in relation to in terms of identity formal representation (Democratic Representation in EU, retrieved on 27th November, 20080 The role of nation-states is indispensable for legitimizing the European Union. The nation-states possess the capacity to reach temporal and timely agreements over the prevailing inequalities and create a framework for compensatory retributive justice and units of accountability (NYU School of Law, Fra L, retrieved on 27th November, 2008) nation-states create specific units from which the European Union is derived. The existence of EU is based on the hard fact that nation-states are vital for developing moral orders, thereby downgrading or downcasting of nation-states could result in adverse consequences. The EU believes that the acceptance of many downcasted societies can be attained only by a national self consciousness that can brought by none other than the nation-states. The European Parliament represents the citizens of the nation-states and not the citizens of the European Unions. Nation-states are considered to be the bed-rock of the European Union; it is supposed to be conducive to freedom and democracy because of their medium scale operations and free communications among their citizens. The EU is a development and integration of super powers mainly the political, economic and bureaucratic elites, the structure of EU is headed from the top down approach rather than a bottom up approach is directed from the top down rather than the bottom up approach. There exists no concept of European people rather all are bounded by the nations and nation states together. In the context of the EU, each and every nation state is a culmination of both monetary as well as a fiscal integration, whereby each nation-state has its own currency and possess control on the domestic prices, the prevailing rate of interest and the rate of exchange as well. And from the perspective of a fiscal integration, every nation-state holds the right to taxation, public spending and the social service structure as well. The above positive factors are also linked with some critical areas which need a deeper understanding about the role of nation-states in the EU. The bigger picture of EU and the role of nation-states is depicted by the fact that the Concepts imbibed by the EU "shared sovereignty," "pooled sovereignty" and "joint national sovereignties" (Coughlan A, retrieved on 27th November, 2008), are just covers to act under one law. However, being a member of EU, countries lose on the power to frame their own laws over a wide range of public matters. Countries and peoples that become a part of EU are more subjected to laws and policies that are made for the benefits of others especially the bigger EU states. The claim made by the EU that any nation who becomes a part of it, merely exchanges the power and control of a small state for participation in decision-making in a larger supranational EU, is nothing but a myth. The EU gradually reduces the power or control of the smaller states in decision-making by curbing their national veto powers which inturn reduces the nation’s intervention in international politics as well. Even its freedom to decide on its domestic affairs is restricted and is on the mercy of the bigger states. That is why EU has also been under many criticisms and issues (Coughlan A, retrieved on 27th November, 2008). ROLE OF NATION-STATES IN PROMOTING INTERNATIONAL TRADE Globalization is the ultimate key for all discussions. The rapid pace at which globalization is spreading has generated both possible opportunities and visible threats as well. Trade policy is considered to be the major influencer for promoting globalization and in turn accelerated the decline of nation-states by promoting both internationality and disintegration. On the whole a National surveillance on the part of parliaments of international agreements on trade negotiated by governments is quintessential for preserving and improving the future of democracy. Specifically related to international trade, nation states worldwide are expected to have a more open, impartial, banal and unbiased polygonal trading system. As far as the role of the nation-states in relation to the current international trading system is concerned, it can be said that many of the WTO agreements have made no consideration for providing apt guidance’s to the member state. However, the task of adapting domestic legislation to the basic rules and regulations of WTO is far the less a crucial and daunting exercise. In a truly globalize economy, the nation-states have completely lost their power and relevance (Teipoh N G, retrieved on 27th November, 2008). In future as the pressures and demands of economic globalization are no the rise with ever increasing debts , imbalances and modifications , the economic role of nation-states in promoting international trade would further weaken(Teipoh N G, retrieved on 27th November, 2008). Globalization is considered to be the root cause of interdependence of economies, liberalization of trade and vanishing role of the nation-states (Vught v F, retrieved on 27th November, 2008). Today's International trade agreement has certainly undermined the role and position of the nation-states. They have a deep impact which stretches beyond the boundaries of traditional trade matters for instance tariffs and quotas but on the contrary grant foreign investors and service providers the eligibility and rights to operate within a state’s territory. For instance, NAFTA provides certain special rights to foreign investors which exceed those privileges granted to the US Businesses by the state laws; this automatically weakens the role of the nation-states. When the nation-states give their consent on the trade agreements drafted by the NAFTA or the WTO, many of the policies drafted by the individual states could be challenged as ‘barriers to trade’ as they contradict or oppose the laws stated in the trade agreements by the international trade organizations (Public Citizen, 2007). The international trade agreements have also affected to state regulatory power by placing restrictions on future policy options. For instance WTO service-sector agreement clearly states that the nation-states cannot expand healthcare coverage or the local land usage, state energy regulations or higher education, professional licensing etc as well. The pitiful state of the nation states can be examined under the formulation and implementation of the “Fast Track” Trade Authority procedures whereby the role of the US Congress is just limited to a yes or no vote with no kind of implications of further changes or modifications after the completion and signing of the final agreement is signed (Public Citizen, 2007) In the modern era nation-state seems to be losing on their sovereignty as they are becoming more interdependent on the regional and international frameworks. Apart from economic independence, another major challenge to be borne by the nation-states in promoting international trade is the universal acceptance of human rights (Khan A, retrieved on 27th November, 2008). It’s not only the developing or the underdeveloped economies that have to depend on other countries but even the most developed and the super powers have to be dependant on other countries for the supply of raw material or other goods which has dissolved complete independence of the states. The international law of human rights subdues the power of the nation-states to the will of the people. The concept of Free State has emerged within the world community whereby the concept of territorial sovereignty is complete decomposed and liberates people from the boundations and constraints of domestic and foreign rules and powers. Free flow of goods, service and human skills has reframed and restructured the traditional, conventional role of the government. It is also said that in coming times, it might be seen that the role of nation-states in international trade may complete extinct (Khan A, retrieved on 27th November, 2008). A deeper concept was laid in the Grotius theory which completely negated the idea of universal sovereignty, saying that it cannot be constricted on the grounds of population or territory but supports the fact that universal sovereignty embraces all the people of the entire world. As far as the international trade is concerned, territorial integrity and political independence are the two components of nation states, however the Grotian theory of international law completes delineates people from the concept of territorial sovereignty (Khan A, retrieved on 27th November, 2008) No matter people consider the role of nation-states as vanishing yet it cannot be denied that nation-states are an important political unit in systematizing human rejoinders to global environmental changes. The fact that the external environment changes or imbalances are caused by global economic activity, nation-states would be required to intervene in formulating international agreements in order to lessen, eradicate, or tune in with the current industrial practices. No other source, except the national-level government is more empowered to deal with the broad environmental changes that take place worldwide. There do exist numerous internal organizations or trading blocks such as Although international and regional organizations, such as the United Nations (UN) or the European Union (EU) for formulating a unanimous international trade action, yet the role of the nation-state remains imperative as the common census regarding the global issues have to be ultimately implemented by the nation states. International environmental agreements are an important mechanism whereby natural resources and other related forms are effectively managed to solve common problems of the nations. Nation-states role is substantial being one of the strong political forces who deal with the issues such global climate change, ozone depletion, and other global environmental problems. Nation states in regard to international trading play a crucial role to generate and analyze the Socio-economic data, such as population, economic, land-use, and biodiversity information which can delve deeper into the insight of the status current standing of individual nation-states in comparison to each other. These comparisons open varied areas for future research and enhancements for better functioning and operations of individual states. It is widely acknowledge notion that internationalization and the reducing control of parliament over political power has undermined role of nation-states on the whole but in a study conducted by   Hurrelmann A , Krell-laluhová Z , Lhotta R ,   Nullmeier  F, Schneider S (2005) it has been stated that the theories of legitimation do not support the fact of complete breakdown of the power of nation-state. The study further elaborates that a linear cause-and-effect relationship can be used to confirm the existence of a more extensive and diversified role of nation-states than what it is generally assumed. Numerous arguments have been analyzed to judge the worth of nation-states in the current times, certainly it cannot be denied that the ruling international trade agreements have posed up certain limitations and boundations under which the state-nations are found in a weakened position, the rules of the agreements and the rules of state appear to be contradictory and conflicting whereby, the nation-state has to bow down but still they have a distinct role in promoting the trade as the nation-states are the real source of implementing the decisions taken by the census of the member nations in adopting the liberalization or the globalization trade policies. REFERENCES Coughlan A, retrieved on 27th November, 2008, The Nation State, Sovereignty and the European Union, Spring 2004, Vol 93, No 369, http://www.spectrezine.org/europe/Enlargement.htm Fra L L, NYU Shool of Law, The European Union as a Sovereignty Association of a Special Nature, The Role of Nation States, retrieved on 27th November, 2008, http://www.jeanmonnetprogram.org/papers/00/00f1201EN-04.html Hurrelmann A, Krell-Laluhová Z, Lhotta R, Nullmeier F Schneider S, (2005). 6 Is there a legitimation crisis of the nation-state?. European Review, 13 , pp 119-137 Khan A, The Extinction of Nation-States, retrieved on 27th November, 2008, http://washburnlaw.edu/faculty/khan-a-fulltext/1992 7americanuniversityjournalinternationallawandpolicy197.pdf McGinnis O J, 22nd September, 2004. The World Trade Organization as a structure of liberty , retrieved on 27th November, 2008, http://www.mywire.com/a/HarvardJournalofLawPublicPolicy/World-Trade-Organization-structure-of/1317962?page=1 Public Citizen, 2007, STATES’ RIGHTS AND INTERNATIONAL TRADE retrieved on 27th November, 2008, http://www.citizen.org/documents/Guide_2.9_Final.pdf Sampson P C, 2001, The Role of the World Trade Organization in Global Governance , retrieved on 27th November, 2008, http://www.unu.edu/unupress/backlist/ab-wto.html Teipoh N G, Towards a Partnership Role for Liberian NGOs in National Development, retrieved on 27th November, 2008, http://www.theperspective.org/ngos.html Vught v F, University Leadership in an International Context, retrieved on 27th November, 2008, http://www.eua.be/eua/jsp/en/upload/Van_Vught.1150714272750.ppt Tamilnation.org, Constitutionalism and Democratic Representation   in the European Union, retrieved on 27th November, 2008, http://www.eif.oeaw.ac.at/downloads/projekte/ResearchProgramme.pdf Read More