Unit 4: World Trade Organisation (WTO)

The main activities of the WTO are as follows:

1. Reducing or eliminating trade barriers through negotiation and agreeing on rules of international trade relating to matters such as anti-dumping, subsidies and product standards.
2. Administering and monitoring the application of the WTO's rules for trade, goods, services and intellectual property rights.
3. Monitoring and reviewing the trade policies of members and ensuring that trade agreements are clear and well documented.
4. Settling trade disputes between members.
5. Helping new members to join. There are currently (2012) 30 countries which are yet to join.

Criticisms of the WTO

Despite good intentions, it does face serious criticism. This comes from the anti-globalisation bodies and environmental groups. The issue focus on the following:

It is undemocratic: WTO rules are written by corporations, therefore consumers, welfare groups, environmentalists, human rights and labour organisations are often ignored. For example, the WTO has ruled it illegal for a government to ban hoew a product is produced, such as with child labour.

It is destroying the environment. For example, the first WTO panel ruled that the US Clean Air Act, requiring domestic and foreign firms to produce cleaner gasoline, was illegal. (It will be interesting to see what they make of the EU Airline tax)

It favours wealthy nations over poor ones. For example, often, negfotiators from poorer countries are not even invited to meetings!. Agreements are then announced that poor countries didnt even discuss. Many poor countries don't have the qualified staff. Many don't have a permanent representitive on the WTO.

It is increasing poverty klevels in poorer countries. Farmers produce enough food to feed everyone. However, corporate control of food distribution means that an estimated 800 million people worldwide suffer from malnutrition.