World Trade Organisation Essay

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World Trade Organisation The official World Trade Organisation web site, defines the WTO as “the only global international organisation dealing with the rules of trade between nations . . . [through] helping producers of goods and services, exporters, and importers (to) conduct their business”1. It was formed in 1995 after growing out of and extending the institution of the General Agreement on Tariffs and Trade. As of the thirtieth of November 2000, the WTO has 140 member-countries, over three-quarters of which are developing or least-developed countries. As the WTO implies, its current role is to serve as the lubrication for the joints in the engine of globalisation; although just how effective and fair this lubrication may be,…show more content…
In this sense, the political side of international trade is a very important one. For example, what is good for General Electric – a leading US corporation - must be good for the US, but not necessarily beneficial for other international industries (APEC Branch 1999). In this sense, the needs of General Electric are favoured by the US Government, who in order to protect this leading corporation of theirs manipulate trade barriers so that countries competing with the US, cannot profitably export the same goods General Electric sells. The opposite is therefore true, that if a country cannot sell certain goods to other nations profitably, or even at all, it must abandon that industry and move onto ‘greener pastures’. The sad irony is that moving to ‘greener pastures’ means moving towards a more industrialised economy where the needs of workers, farmers and small business are ignored (Callaghan 2001). To show sympathy and compassion for such globally useless industries would mean the government would either have to subsidise their excess production cost, or impose trade barriers on the cheaper imports which threatened their production in the first place. Such an action, under the WTO’s rules and agreements, is illegal under any pretence, whether the imports be genetically modified or the product of slave labour (WTO Online(1)
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