Essay about World Trade Organization is the Way to Go

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World Trade Organization is the Way to Go Ever since man has been engaged in international commerce, trade disputes have existed. Adam Smith observed trade disputes over 220 years ago in The Wealth of Nations. In Smith’s eyes, if a trading partner imposed restrictions on your exports, then you had the right to retaliate and impose restrictions on their imports. He felt that unilateral trade dispute settlement was the right thing to do. However, Smith's answer to settling trade disputes was shortsighted. In an era where his home country, England, was the superpower of its time, Smith could not foresee the creation of an international organization to regulate trade and commerce around the world. With the creation of the General…show more content…
If there was something the United States didn't like they just took care of it. In reality they consulted and negotiated, but in the end they could act with complete disregard for other nations. Finally, the WTO has picked up and fixed the problems of the GATT system. The dispute settlement system is much more effective and efficient. There is no longer any need for the United States to handle trade matters on their own. In the following discussion I will explain the origins of the GATT and WTO trade dispute settlement processes. In between I will demonstrate the creation of Section 301, America’s "home grown" dispute settlement system, and its use to unilaterally settle trade disputes. To better understand why the multilateral system of the dispute settlement process is best it is important to understand the origins of the GATT/WTO system and the origins of the unilateral approach The GATT Dispute Settlement System The General Agreements on Tariffs and Trade, signed by twenty-three parties in 1947, was the predecessor of today’s World Trade Organization. Two provisions in the original agreement evolved into today’s dispute settlement process. However, neither "dispute settlement nor the ad hoc independent tribunal or panel that some herald as the GATT’s finest achievement" are mentioned in the provisions according to Rosine M. Plank-Brumback (Plank-Burmback, 1997: 367). Ironically, these articles that form the basis of
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