Essay about Is Free Trade Fair?

2978 Words Sep 11th, 2011 12 Pages
1. Is free trade fair?

You will need to explain what free trade is, which trade theories seek to explain free trade, and whether you assess free trade to be fair. You must use examples to support your arguments.

1) benefits
2) costs + criticisms
3)case study
4)member states
5)non member states
6) case study
7) yes or no
Introduction
Free trade as defined by Hill (2009) implies that a country and its citizens can purchase goods from another country or produce and sell goods to another country without any government influence in the form of quotas, tariffs or duties. There are many theories explaining free trade, from Adam Smith’s theory of absolute advantage in 1776 to the new trade theory in the 1970s. As more and more
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The World Trade Organization
The WTO is the biggest organization supporting free trade in the world today, with over 150 country members in 2007 participating in a world trading system (Hill, 2009). It started off as the General Agreement of Trade and Tariffs (GATT), founded by the U.S in 1947, whose objective was to liberalize trade through reductions in tariffs, quotas and subsidies. Upon the formation of the WTO in 1995, new guidelines were established to enforce trade rules, implement intellectual property rights and agricultural policies, enable trade in services and reduce tariff and non-tariff barriers even further (Hill, 2009). The WTO is also supposed to mitigate any trade disputes through an arbitration panel and has the power to impose trade sanctions should a nation violate established trade policies. At the most recent round of talks in Doha, where members sought to address issues like abuse of antidumping policies, excessive agricultural protectionism, no significant agreements were reached (Hill, 2009). By 2008, there were 153 developing nations in the WTO, with 32 of them classified as least developed countries, yet the many rounds of talks have failed to provide any beneficial policies for these nations (Bown & McCulloch, 2010). It is only fair that the WTO provides regulations stating equal tariff rates for each industry and consistent rulings, but this has not been the case, as examples

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