The WTOs Procedure for Resolving Trade Quarrels - Essay Example

?The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is critical for enforcing the rules and therefore for ensuring that trade flows smoothly. A dispute arises when a member government believes another member government is violating an agreement or a commitment that it has made in the WTO. The authors of these agreements are the member governments themselves — the agreements are the outcome of negotiations among members (World Bank Group 1994). Ultimate responsibility for settling disputes also lies with member governments, through the Dispute Settlement Body. The establishment of binding dispute settlement system by WTO in 1995 was one of its most plausible achievements. It was developed from GAAT model of settling disputes, the rules and procedures governing (DSU) understanding is that it contains developments that has led to change from a system based on economic power and politics to one based on rule of law (World Bank Group 1994). The outcome was more legality of the WTO that has been praised as benefiting specifically smaller countries, of which many are developing countries and least-developed countries. The shift 'is specifically beneficial for smaller countries, as without the rules and procedures of the DSU... they would not have the necessary bargaining power vis-a-vis the larger powers. 'Similarly, Weiler notes the advantages of the legalised WTO model, 'especially for the meek economically and politically unequal.' International agreements are not any useful if the rules stipulated cannot be complied with especially if the parties that are signatories to these agreements can not comply with the obligations as stipulated. An efficient and effective way of settling disputes often increase the members that are signatory to certain agreements commitments to complying and committing to those rules. Members of WTO established current dispute settlement system thus during the Uruguay round of multilateral trade negotiations shows their commitment to compliance by all Members with their obligations under the WTO Agreement. All members should and have to comply with these regulations as stipulated in writing. It is very important to settle disputes in time and through a structured manner (World Bank Group 1994). It helps to prevent the detrimental effects of unresolved international trade conflicts and to mitigate the imbalances between stronger and weaker players by having their disputes settled on the basis of rules rather than having power determine the outcome. Most people consider the WTO dispute settlement system to be one of the major results of the Uruguay Round (World Bank Group 1994). After the entry into force of the WTO Agreement in 1995, the dispute settlement system soon gained practical importance as Members frequently resorted to using this system. The details of the WTO Agreement have all the certain multilateral agreements. This is to say that, the WTO Agreement contains all agreements that have been considered in the Uruguay Round. References in this guide to the “WTO Agreement” in general, therefore, include the totality of these rules. However, the WTO Agreement itself, if taken in isolation from its annexes, is a short Agreement containing 16 Articles that set out the institutional framework of the (WTO) as an international organization (Shaffer and Melendez-Ortiz 2010). Specific references to the WTO Agreement (e.g. “Article XVI of the WTO Agreement”) relate to these rules. World Bank reduces poverty in most countries in world by providing technical and financial help, ensures that people are able to generate their own incomes. They react quickly to the situation which affects any countries negatively. In addition World Bank help in improving health facilities and education especially in developing countries, this increases the leaving standard of the people. It assists in providing food to countries which are facing shortage of foods or high increase in food prices. World bank sustain growth in the future by investing in youth and women and making sure they have better education system and giving loans to women. World Bank has identify practical options dealing with unemployment, it create good environment for female entrepreneurs to grow. These entrepreneurs generate jobs opportunities to the society hence reducing unemployment in the country. The Bank has improved rationality in global efforts to build toughness, and to fix disaster risk management on climate change and social safety. Its improvement in financing FY09 saw an extraordinary fifty four percent increase over FY08, helping in prevention of malnutrition in pregnant women and young children; keep health clinics open and children in school; and enlarge nutrition programs and microfinance loans to women (Shaffer and Melendez-Ortiz 2010). Additionally, the World Bank established in 2008 the Global Food Crisis Response Program to help the countries adversely hit by the dramatic increase in food prices.   The Bank’s have endlessly paid attention to the importance of jobs. The banks combined success in poverty reduction is measured by the level to which inhabitants can produce their own incomes, provide for their own families, and modify their ideas into the economic ventures of the future. At the time of worldwide economic uncertainty, it is vital that the most vulnerable and poor people around the world see a basis for hope. The bank requires empowering people especially youth, who need steadiness, opportunities and education to maintain growth in the future. Women are major drivers of change and should not be forgotten. A comprehensive approach to sustainable economic growth recognizes the importance of employment for women. The Group should continue to identify practical options for tackling unemployment, making coherent use of its various instruments. In particular, the International Finance Corporation and the Multilateral Investment Guarantee Agency should continue to play key roles given the importance of the private sector in generating jobs (Shaffer and Melendez-Ortiz 2010). The banks current experience in the Caribbean should be a reminder for them that reduction of poverty is more difficult in societies facing disasters, crises and shocks, whether environmental, economic or natural. Poor families experience the burden of catastrophe and are facing the greatest challenges in recovering and rebuilding. Children are also vulnerable. The main concern should be the governments should be given to practical approaches that encourages implementation of measures to stop events from tending towards disasters. Work cited World Bank Group. The World Bank Group: learning from the past, embracing the future. New York: World Bank Group, 1994 Gregory, Shaffer and Ricardo, Melendez-Ortiz. Dispute Settlement at the WTO: The Developing Country Experience. Cambridge: Cambridge University Press, 2010 Read More