Disadvantages of World Trade Organization (Wto)

987 WordsDec 8, 20124 Pages
Disadvantages of World Trade Organization (WTO) 1. The WTO only serves the interests of transnational corporations The WTO is as democratic as its member governments; and between the members it is ultra-democratic because decisions are taken by consensus — all members have to be persuaded. The rules are written by member governments, no one else has access to the negotiations. However, governments, which are elected democratically by their citizens, do take into account the views of various groups in their societies. How they do that is up to them and their citizens. Governments regularly cite pressure from consumer, environmental, human rights and labor organizations, as well as business. The structure of negotiations also helps…show more content…
7. The WTO undermines local development and penalizes poor countries Most-favored-nation treatment means non-discrimination between countries. Equal treatment is an overwhelmingly important and useful principle for both fairness and efficiency. Most-favored-nation does not mean treating all corporations equally. A government can reward or penalize corporations, but the same criteria for doing this must normally apply to all foreign companies. (There are some constraints on what those rules might say.) 8. The WTO is increasing inequality “Free trade is not working for the majority of the world. During a 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 hastened these trends by opening up countries to foreign investment and thereby making it easier for production to go where the labor is cheapest and most easily exploited and environmental costs are low. This pulls down wages and environmental standards in developed countries that have to compete globally.” 9. The WTO undermines national sovereignty “By creating a supranational court system that has the power to economically sanction countries to force them to comply with its rulings, the WTO has essentially

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