The world trade organization (W.T.O) is an international organization, which deals with rules and issues of trade between nations. Since its formation, the world trade organization has initiated trade agreements. …
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The organization has the primary goal of necessitating business between producers, exporters, and importers of services and goods. This paper seeks to describe a number of aspects concerning the WTO. The paper will discuss the development of the W.T.O, when it developed, and interests, which supported its development. The paper will also focus on how the organization related to changes in the transnational flows of production and investment. In addition, the paper will address this organization developed as part of the broader network of transnational institution. The paper will also focus on the impact of world trade organization’s transnational regulation on equality and democracy within domestic states.
The development of the world trade organization
The world trade organization came into being in 1995. After the Second World War, organizations to deal with trade, such as General Agreement on Tariffs and trade were formed. The last talks of the General Agreement on Trade and Tariffs gave birth to the world trade organization. The WTO carried on with the negotiations initiated by the GATT. The world trade organization developed to end trade discrimination and enhance multilateral trade among nations. Thus, the General Agreement on Trade and Tariffs contributed to the formation of the World trade organization (Aturupane 2000, p. 350).
As a result, nations realized that GAAT did not have the appropriate answers to the complex nature of global trade. This saw the formation of the WTO following a series of negotiations referred to as Uruguay Round (UR). Interests which supported the development of WTO. Aturupane (2000, p. 351) observes that a number of interests supported the development of the World Trade Organization. These interests have to do with the improvement and enhancement of global trade within nations. One of the interests, which supported the formation of the WTO include the desire to increase trade in goods as well as services. Intellectual property rights also formed part of the reasons as to why the international organization came into being. Interests to enhance trade in agricultural goods also reinforced the formation of WTO. Other organizations such as GATT had minimal trade in agricultural goods. As a result, the World Trade Organization came into being to improve trade activities in agricultural goods. Non discrimination in trade activities also enhanced the development of WTO. Before its formation, countries saw the need to address the issue of non discriminatory trade agreements. On this regard, WTO had to be formed to eradicate discrimination in the imposition of tariffs. This could see an end to trade barriers within member states. The MFN principle ensured that WTO had the mandate to ensure eradication of trade barriers. Under this principle, a country cannot impose tariffs on other member states based on discrimination. Non discrimination became the basis of multilateral trade regimes (Janow et al 2008, p. 145). Dispute settlement can be regarded as an interest as to why the WTO came into existence. Before its development, dispute
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World Trade Organization.The World Trade Organization is one of the relatively younger world organizations that exist to help regulate the international business community. Formally created on January 1, 1995 based upon the dictates of the Marakesh Agreement, the organization replaced the then existing General Agreements on Tariffs and Trade which was created in 1948.
The World Trade Organization was created with a goal and ultimate objective set in mind. Its ultimate goal is to improve the welfare of peoples in the member countries. The purpose is to aid trade flow efficiently, lawfully as well as predictably. It has nearly One hundred and fifty one member states, which account for 97% of world trade (Ben-David p15).
Given countries' poor provision of natural resources and industry's need for significant overseas markets, the rationale for such advocacy is not difficult to discern. Initially, developed countries utilized WTO in many ways as an 'international public good' which would allow it to enjoy the benefits of greater international market access without necessarily having to make a significant contribution itself.
But the GATT was formed through agreement among trading countries: it did not have the international status of the International Monetary Fund (IMF) or the World Bank, both of which were international groups. Instead, the GATT Secretariat saved the signatories to the GATT.
The international trade happens when goods or services are exported by a firm to another country (Hill 2003, p. 8). Moreover, Hill (2003) added that a foreign direct investment happens when a firm invests resources in business activities in the other country.
However, Rose (2004a, 2004b) surprisingly shows that there is no strong empirical evidence that the GATT/WTO has systematically played a strong role in stimulating trade. In contrast, Subramanian and Wei (2007) and Balding (2008) find robust evidence that the GATT/WTO has had the strong positive impact on international trade.
This thesis analyzes and explains how the develop countries have more power in World Trade Organization's Dispute Settlement Mechanism and are influencing the developing countries.
The WTO Dispute Settlement Mechanism should secure the 'rule of law' within international trade and provide all members with opportunities to exercise their rights equally under multilateral trade agreements.
This paper provides an understanding of the WTO (World Trade Organization) system and its implications to government policies and international business. The issues examined include scope and definition of investment, transparency, non-discrimination, settlement of disputes and balance of payment safeguard.
Having said that, we need to understand that globalization is not just a phenomenon, it is the science of human evolution and since man has for long held fast to this belief, there can be no reason as to
Doha development agenda were launched in 2001 and expected to be completed in 2005. However, this was not realized despite efforts to gather urgent dignitaries (Jones, 2010). Although the G20 endorsed the goal of concluding the talks in
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