Wto And Its Role Of Globalization

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WTO and its role in globalization Intro History and development of WTO http://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr01_e.htm The World Trade Organization (WTO) was founded in 1995 as a result of the Uruguay Round. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT). So while it is still young, the multilateral trading system that was originally set up under GATT is well over 50 years old. The system was developed through a series of trade negotiations, or rounds, held under GATT. The goal of WTO “is to improve the welfare of the peoples of the member countries”. The WTO has a number of principles, which are the foundation of the multilateral trading system. First of all, there are two…show more content…
Because opening markets can be beneficial but also requires adjustment, The WTO agreements allow changes to be introduced gradually by its member countries, through “progressive liberalization”. Plus, developing countries are usually given longer to fulfill their obligations. The fourth principle is Predictability: through binding and transparency. This encourages investment, creation of job and fair competition (more choice and lower price). This can be achieved through binding arrangement and transparency; promising not to raise a trade barrier; government disclosing their policies and practices publicly within the country or notifying the WTO; regular surveillance of national trade policies. Another principle is Promoting Fair Competition. The WTO is a system of rules dedicated to open, fair and undistorted competition. It discourages “unfair” practices such as export subsidies and dumping products at below cost to gain market share. The rules on non-discrimination – MFN and national treatment – and most of other WTO regulations are designed to secure fair conditions of trade. Many of the other WTO agreements aim to support fair competition: in agriculture, intellectual property, services. Last principle of the WTO is Encouraging development and economic reform. The WTO system contributes to development as the WTO is paying attentions to developing countries. More than
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