Then
world trade organization is a product of the Uruguay Round of talks on free
trade. The WTO is the successor of the GATT (The General Agreement on Trade and
Tariff). According to Cateora P. (1996 p 49) ‘the US and 22 other countries
signed the GATT shortly after WW II. Although not all countries participated,
this
world trade organization is a product of the Uruguay Round of talks on free
trade. The WTO is the successor of the GATT (The General Agreement on Trade and
Tariff). According to Cateora P. (1996 p 49) ‘the US and 22 other countries
signed the GATT shortly after WW II. Although not all countries participated,
this
agreement paved way for the first effective world wide tariff agreement.’
By 1994, it had 117 nations that seek to resolve their trade disputes
bilaterally, if it fails, special GATT panels are set up to recommend action.
The panel is only advisory and has no enforcement power.
The
WTO is an institution, not an agreement as was GATT. It set the rules governing
trade between its 117 members, provides a panel of experts to hear and rule on
trade disputes between member nations and unlike GATT, issue binding decisions.
It will require, for the fist time, the full participation of all members in
all aspect of the current GATT and the Uruguay Round agreements and through its
enhanced stature and scope, provides a permanent, comprehensive forum to
address the trade issues of the 21st century global market
WTO is an institution, not an agreement as was GATT. It set the rules governing
trade between its 117 members, provides a panel of experts to hear and rule on
trade disputes between member nations and unlike GATT, issue binding decisions.
It will require, for the fist time, the full participation of all members in
all aspect of the current GATT and the Uruguay Round agreements and through its
enhanced stature and scope, provides a permanent, comprehensive forum to
address the trade issues of the 21st century global market
The
latest entrant into the WTO IS China in 2001, All member countries have equal
representation in the WTO ministerial conference that meets at least every two
years to vote for a director – general who will appoint other officials. A
panel of experts, who hear both nations at disputes, before taking a decision,
entertains trade disputes. The victorious side whose rights are infringed is
authorized to retaliate with trade sanctions i.e. if the losing country does
not change practices. The WTO ensures that member countries agree to the
obligations of all agreements, not just those they like. Thus codes of
operations and rules are set which compels members. Developed and less
developed countries are obligated to open their markets and to be bound by
rules of the multilateral trading system. Given these benefits to world trade
one can appreciate the impact it has in building world business relation
relationships.
latest entrant into the WTO IS China in 2001, All member countries have equal
representation in the WTO ministerial conference that meets at least every two
years to vote for a director – general who will appoint other officials. A
panel of experts, who hear both nations at disputes, before taking a decision,
entertains trade disputes. The victorious side whose rights are infringed is
authorized to retaliate with trade sanctions i.e. if the losing country does
not change practices. The WTO ensures that member countries agree to the
obligations of all agreements, not just those they like. Thus codes of
operations and rules are set which compels members. Developed and less
developed countries are obligated to open their markets and to be bound by
rules of the multilateral trading system. Given these benefits to world trade
one can appreciate the impact it has in building world business relation
relationships.
The
following are however, the drawbacks and criticisms of the organization
following are however, the drawbacks and criticisms of the organization
Top
ten reasons to oppose the world trade organisation
ten reasons to oppose the world trade organisation
1.
The WTO only serve the interest of multinational corporations
The WTO only serve the interest of multinational corporations
The
WTO is not a democratic, transparent institution, but its policies impact all
aspects of society and the planet. The WTO rules are written by and for
corporations with inside access to the negotiations. For example, the US Trade
Representatives relies on its 17 ‘Industry sector Advisory Committees’ to
provide input into trade negotiations. Citizen’s input by consumer,
environmental, human rights and labour organizations is consistently ignored.
Even requests for information are denied, and the proceedings are held in
secret
WTO is not a democratic, transparent institution, but its policies impact all
aspects of society and the planet. The WTO rules are written by and for
corporations with inside access to the negotiations. For example, the US Trade
Representatives relies on its 17 ‘Industry sector Advisory Committees’ to
provide input into trade negotiations. Citizen’s input by consumer,
environmental, human rights and labour organizations is consistently ignored.
Even requests for information are denied, and the proceedings are held in
secret
2.
The WTO is a stacked court
The WTO is a stacked court
The
WTO’s dispute panels, which rule on whether domestic laws are ‘barriers to
trade’ and should therefore be abolished, consist of three trade bureaucrats
who are not screened for conflict of interest. For example, in the tuna/
dolphin case that Mexico filled against the US (which forced the US to repeal
its law that barred tuna from being caught by mile – long nets that kill
hundreds of thousands of dolphins each years), one judge was from a corporate
front group that lobbied on behalf of the Mexican government for NAFTA
WTO’s dispute panels, which rule on whether domestic laws are ‘barriers to
trade’ and should therefore be abolished, consist of three trade bureaucrats
who are not screened for conflict of interest. For example, in the tuna/
dolphin case that Mexico filled against the US (which forced the US to repeal
its law that barred tuna from being caught by mile – long nets that kill
hundreds of thousands of dolphins each years), one judge was from a corporate
front group that lobbied on behalf of the Mexican government for NAFTA
3.
The WTO tramples over labour and human rights
The WTO tramples over labour and human rights
The
WTO has refused to address the impacts of the trade on labour rights, despite
the fact that countries that actively enforce labour rights are disadvantaged
by countries that consistently violate international labour conventions. Many
developing countries, such as Mexico, contend that labour standards constitute
a ‘barrier to free trade’ for countries whose competitive advantage in the
global economy is cheap labour. Potential solutions to labour and human rights
abuses are blocked by the TWO, which has ruled that is:
WTO has refused to address the impacts of the trade on labour rights, despite
the fact that countries that actively enforce labour rights are disadvantaged
by countries that consistently violate international labour conventions. Many
developing countries, such as Mexico, contend that labour standards constitute
a ‘barrier to free trade’ for countries whose competitive advantage in the
global economy is cheap labour. Potential solutions to labour and human rights
abuses are blocked by the TWO, which has ruled that is:
a)
Illegal for a government to ban a product based on the way it is
produced (i.e. with child labour); and
Illegal for a government to ban a product based on the way it is
produced (i.e. with child labour); and
b)
Governments cannot take into account ‘non commercial values’ such as
human rights and behaviour of companies that do business with vicious
dictatorships, such as Burma when making purchasing decisions
Governments cannot take into account ‘non commercial values’ such as
human rights and behaviour of companies that do business with vicious
dictatorships, such as Burma when making purchasing decisions
4.
The WTO is destroying the environment
The WTO is destroying the environment
The
WTO is being used by corporations to dismantle hard – won environmental
protection which are attacked as ‘barriers to trade’. In 1993, the very first
WTO panel ruled that a provision of the US Clean Air Act, requiring both domestic
and foreign producers alike to produce cleaner gasoline, was illegal. Recently,
the WTO declared illegal a provision of the Endangered Species Act that
requires shrimp sold in the US to be caught with an inexpressive device
allowing endangered sea turtles to escape. The WTO is currently negotiating an
agreement that would eliminate tariffs on wood products, thus increasing the
demand for timber and escalating deforestation
WTO is being used by corporations to dismantle hard – won environmental
protection which are attacked as ‘barriers to trade’. In 1993, the very first
WTO panel ruled that a provision of the US Clean Air Act, requiring both domestic
and foreign producers alike to produce cleaner gasoline, was illegal. Recently,
the WTO declared illegal a provision of the Endangered Species Act that
requires shrimp sold in the US to be caught with an inexpressive device
allowing endangered sea turtles to escape. The WTO is currently negotiating an
agreement that would eliminate tariffs on wood products, thus increasing the
demand for timber and escalating deforestation
5.
The WTO is killing people
The WTO is killing people
The
WTO’s fierce defence of intellectual property rights – patents, copyrights and
trademarks – comes at the expense of health and human lives. The organization’s
support for pharmaceutical companies against governments seeking to protect
their people’s health has had serious implications for places like sub-Saharan
Africa, where 80 percent of the world’s new AIDS case are found. The US
government, on behalf of US drug companies, is trying to block developing
countries access to less expensive life-saving drugs. For example, the south
African government has been threatened with a WTO challenge over proposed
national health laws that would encourage the use of generic drugs, ban the
practice of manufacturer offering economic incentive to doctors who prescribe
their products and institute ‘parallel importing’., which allows comparison to
import drugs from other countries where the drugs are cheaper
WTO’s fierce defence of intellectual property rights – patents, copyrights and
trademarks – comes at the expense of health and human lives. The organization’s
support for pharmaceutical companies against governments seeking to protect
their people’s health has had serious implications for places like sub-Saharan
Africa, where 80 percent of the world’s new AIDS case are found. The US
government, on behalf of US drug companies, is trying to block developing
countries access to less expensive life-saving drugs. For example, the south
African government has been threatened with a WTO challenge over proposed
national health laws that would encourage the use of generic drugs, ban the
practice of manufacturer offering economic incentive to doctors who prescribe
their products and institute ‘parallel importing’., which allows comparison to
import drugs from other countries where the drugs are cheaper
6.
The US adoption of the WTO was undemocratic
The US adoption of the WTO was undemocratic
The
WTO was established out of the Uruguay Round of the General Agreement on
Tariffs and Trade (GATT) negotiations. On December 1, 1994, congress approved
GATT under Fast Track during a lame – duck session of congress. Fast Track
limits public debate by not allowing amendments. The approval of the WTO
required entire sections of US laws to be rewritten to conform with the WTO
rules; similar to the way that treaties often redefine how the US will interact
with other nations. Had the agreement been voted on as a treaty, requiring a
two third majority in the senate, it would have been defeated
WTO was established out of the Uruguay Round of the General Agreement on
Tariffs and Trade (GATT) negotiations. On December 1, 1994, congress approved
GATT under Fast Track during a lame – duck session of congress. Fast Track
limits public debate by not allowing amendments. The approval of the WTO
required entire sections of US laws to be rewritten to conform with the WTO
rules; similar to the way that treaties often redefine how the US will interact
with other nations. Had the agreement been voted on as a treaty, requiring a
two third majority in the senate, it would have been defeated
7.
The WTO undermines local development and panellizes poor countries
The WTO undermines local development and panellizes poor countries
The
WTO’s ‘most favoured nation’ provision requires all WTO member countries to
treat each other equally and to treat all corporations from these counties
equally regardless of their trade records. Local policies aimed at rewarding
companies who hire local residents, use domestic materials, or adopt
environmentally sound practises are essentially illegal under the WTO rules,
developing countries are prohibited from following the same policies that
developed countries are prohibited from following the same policies that
developed countries pursued, such as protecting nascent, domestic industries
until they can be internationally competitive.
WTO’s ‘most favoured nation’ provision requires all WTO member countries to
treat each other equally and to treat all corporations from these counties
equally regardless of their trade records. Local policies aimed at rewarding
companies who hire local residents, use domestic materials, or adopt
environmentally sound practises are essentially illegal under the WTO rules,
developing countries are prohibited from following the same policies that
developed countries are prohibited from following the same policies that
developed countries pursued, such as protecting nascent, domestic industries
until they can be internationally competitive.
8.
The WTO is increasing inequality
The WTO is increasing inequality
Free
trade is not working for the majority of the world. During the most recent
period of rapid growth in global trade and investment (1960 to 1998) inequality
worsened both internationally and within countries. The UN Development program
reports that the richest 20 percent of the world’s population consume 86
percent of the world’s resources while the poorest 80 percent consume just 14
percent. WTO rules have hastens these trends by opening up countries to foreign
investment and thereby making it easier for production to go where the labour
is cheapest and most easily exploited and environmental cost are low. Companies
cut wages and jobs in developed countries, saying they must in order to be
‘globally competitive’.
trade is not working for the majority of the world. During the most recent
period of rapid growth in global trade and investment (1960 to 1998) inequality
worsened both internationally and within countries. The UN Development program
reports that the richest 20 percent of the world’s population consume 86
percent of the world’s resources while the poorest 80 percent consume just 14
percent. WTO rules have hastens these trends by opening up countries to foreign
investment and thereby making it easier for production to go where the labour
is cheapest and most easily exploited and environmental cost are low. Companies
cut wages and jobs in developed countries, saying they must in order to be
‘globally competitive’.
9.
The WTO undermines national sovereignty
The WTO undermines national sovereignty
By
creating a super national court, system that has the power to levy big fines on
countries to force them to comply with its rulings, the WTO has essentially
replaced national governments with an unaccountable, corporate – backed
government. For the past nine years, the European Union has banned beef raised
with artificial growth hormones. The WTO recently ruled that this public health
law is a barrier to free trade and should be abolished. The EU has to roll back
its public health protections or pay stiff penalties. Under the WTO,
governments can no longer act in the public interest
creating a super national court, system that has the power to levy big fines on
countries to force them to comply with its rulings, the WTO has essentially
replaced national governments with an unaccountable, corporate – backed
government. For the past nine years, the European Union has banned beef raised
with artificial growth hormones. The WTO recently ruled that this public health
law is a barrier to free trade and should be abolished. The EU has to roll back
its public health protections or pay stiff penalties. Under the WTO,
governments can no longer act in the public interest
10.
The tide is turning against free trade and the WTO!
The tide is turning against free trade and the WTO!
There
is a growing international backlash against the WTO and the process of
corporate globalization over which it presides. Movement- building by
coalitions such as people’s global action against the WTO in Europe and the
citizen’s trade campaign in the US are growing fast, as public support dwindles
for corporate-managed free trade. Recent polls show that 58 percent of
Americans agree that foreign trade has been bad for the US economy, and 81
percent of Americans say that Congress should not accept trade agreement that
give other countries power to overturn US laws. (Too late!) The WTO has no
public mandate to exist. Thousands will be in Seattle from November 30 to
December 3 to demand that the WTO cease and desist from further negotiation and
instead, review and repair the damage done under WTO regimes in the last four
years.
is a growing international backlash against the WTO and the process of
corporate globalization over which it presides. Movement- building by
coalitions such as people’s global action against the WTO in Europe and the
citizen’s trade campaign in the US are growing fast, as public support dwindles
for corporate-managed free trade. Recent polls show that 58 percent of
Americans agree that foreign trade has been bad for the US economy, and 81
percent of Americans say that Congress should not accept trade agreement that
give other countries power to overturn US laws. (Too late!) The WTO has no
public mandate to exist. Thousands will be in Seattle from November 30 to
December 3 to demand that the WTO cease and desist from further negotiation and
instead, review and repair the damage done under WTO regimes in the last four
years.
It
is needless to assert that this protest grew into a big rally in the USA that
sent shockwave over the world and it was a media delight and event.
is needless to assert that this protest grew into a big rally in the USA that
sent shockwave over the world and it was a media delight and event.