INTRODUCTION
According to (2006), World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations, the heart of the organization are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal of WTO is to help producers of goods and services, exporters and importers conduct their business. The main purpose is to promote free trade by persuading countries to abolish import tariffs and other barriers. As such, it has become closely associated with globalisation. (2005) The decisions are absolute and every member must abide by its rulings and its members are empowered by the organisation to enforce its decisions by imposing trade sanctions against countries that have breached the rules. The WTO has a much broader scope than (2005) Whereas regulated trade in merchandise goods, the WTO also covers trade in services, such as telecommunications and banking, and other issues such as intellectual property rights.
The WTO has been the focal point of criticism from people who are worried about the effects of free trade and economic globalisation. Opposition to the WTO centres on four main points:(2005)
Ø WTO is too powerful, in that it can in effect compel sovereign states to change laws and regulations by declaring these to be in violation of free trade rules
Ø WTO is run by the rich for the rich and does not give significant weight to the problems of developing countries. For instance, the rich countries have not fully opened their markets to products from poor countries
Ø WTO is indifferent to the impact of free trade on workers’ rights, child labor, the environment and health
Ø WTO lacks democratic accountability, in that its hearings on trade disputes are closed to the public and the media
The supporters of the WTO argue that it is democratic, in that its rules were written by its member states, many of whom are democracies, who also select its leadership. They also argue that, by expanding world trade, the WTO in fact helps to raise living standards around the world.
DISCUSSION
During the year 2003, there was a crucial period for the process of agricultural trade negotiations in the WTO that will be able to determine the final shape and details of certain agricultural agreement within the collision of results on developing countries as this agreement was called DOHA Round with the consistent participation of developing countries in the current round of agricultural trade negotiations as be grounded in analytical and empirical understanding of the effects of various research. (2005) Thus, the EU and the US represents the deeper reforms in terms of evaluating how the development round affects the economies of these countries most of it, the developing and least-developed countries and that the process will provide better basis for the group involved to assert priorities for crucial and useful efforts in the context of the Doha Round of World Trade Organizations (WTO) respectively. (2005) Moreover, the civil society groups demanded stronger protection for developing countries in DOHA development round of international trade negotiations and asked EU in ensuring that protection for poor and development countries is built into the Doha round of trade negotiations in order to discuss EU promises to put development issues at the heart of the Doha Round. (2006)
DOHA, which is designed to lead to further reductions in trade barriers for agriculture, services and textile imports, ensuring that trade agreements did not damage the environment and is expected to last as the most complex trade negotiations and be given greater right to invest in developing countries without restriction. ( 2001) Moreover, the World Trade Organization is working with the EU and other countries to help developing and least developed countries adjust to a multilateral trading system as it seems hard to believe that there will be a major ingredient of the Doha Round as it implies to the agricultural protectionism of those countries affected by its presence in the economy although it is quite difficult to really liberalize services in a negotiating context based on such concessions as shown by the EU in which of intense efforts, has made very limited progress in opening up domestic markets in services on this basis. ( 2001; 2003) Thus, if the global community hopes to avoid unduly slow progress in the Doha Round as it needs a “Grand Vision” (2005) that takes the emerging market economies to take a leadership role that will help avoid the disastrous tendency to oversell the outcome of an individual round that can oversold the Doha development in terms of protecting the importance of agriculture in developed countries.
Henceforth, when Doha round of trade talks began, World Trade Organization aimed to establish a framework for negotiations to reduce trade barriers and subsidies in agriculture. There can be no overstating the importance of these negotiations, particularly for developing countries. (2001) Rich countries’ agricultural subsidies and import barriers pose a significant obstacle to development and poverty alleviation in the developing world, where more than 97 percent of the people are engaged in agriculture and import barriers could lift annual rural income in the developing world and the total development process globally. (2001) The framework for future reform of trade in agriculture are vital to the negotiations because they spell out how governments should address key issues like tariff reductions, curbing of export competition distortions, special and differential treatment for developing countries and cutting domestic subsidies to farmers. (1999) On the contrary, there are widespread indications that delegations are committed to carry on with their work in trade processes, agriculture and other areas related to international trade. It is essential that they do so. It is just as crucial that the government pursue a strategy of positive linkages among the issues that comprise the Doha negotiations. (2005)
In addition, agriculture is by no means the only element of these talks. Issues like the liberalization of trade in services, the reduction of tariffs on manufactured products, rules for dealing with unfair trade practices and the relationship between trade and environmental protection are important and must continue if the Doha round is successful and the global trading system is to remain vibrant. (2005) The Doha negotiations constitute what is known as a single undertaking (2005) and it facilitates tradeoffs, so the government can in a way, be reluctant to break down import barriers in one sector may be more agreeable if they are presented with opportunities for exporters in another sector. In other words, by inching closer to agreement to pare back barriers to trade in telecommunications as it may become easier to find solutions to the problems we face in agriculture. ( 2001) Aside, failure to reach agreement on the Doha negotiations would possibly raise fears that governments are incapable of taking the decisions needed to address the global economic slowdown and to help alleviate poverty in the developing world. ( 1992)
Although, USA and EU tried to introduce ‘new issues’ of trade and investment, playing down contentious issues, opening negotiations on existing agreements and initiating new tariff discussions. (2002) Thus, the excessive protectionism that restricts the reach of ‘developing country’ markets was also not addressed and some critics have suggested that this will even intensify in view of the global economic downturn in years. (2002) A greater participation in world trade will directly increase the income of the poorest one-fifth of the world’s population. Furthermore, trade liberalization has many negative impacts on the agricultural policies of southern countries however, shifting the priorities of the government from their own citizens to the needs of a volatile international market. ( 2001) Those who have broken into these markets have not always seen incomes rise, since prices have actually fallen for a number of agricultural commodities which has not always led to ‘pro poor growth’ ( 2001). There can be bad news that the Doha round of the World Trade Organization remains on life support, (2005) but, the good news, it is not completely dead as there were some hard decisions on agricultural subsidies were kicked down the road and a tentative timetable for resolving them in lieu of keeping trade liberalization moving forward in the difficult areas of agriculture and services is one of the most important issues now facing the international community. (2005)
The trade talks are in constant danger of foundering between anti-globalization protestors’ of the modern world and the developed countries’ attachment to subsidies of domestic interest groups which closes their markets to products from developing countries. (2003) The way the industrial trade countries could provide even greater benefits to the developing countries: trade liberalization because such removal of industrial country barriers would provide the opportunity to developing countries to boost economic growth through increased exports. ( 2003) Moreover, the opening of international trade markets by organizations would provide enough economic gains in developing policies that the trade manners need like for example, in the form of lower prices for their loyal consumers and meant that it is critical for the existing Doha Development Round of trade negotiations in the WTO (2003) achieve deep liberalization that justifies the economy for the positive status in agriculture as the Doha round almost failed to aspire for their effectiveness in those countries within the boosting of political commitment from the leaders of both the rich and the developing countries amicably. ( 2003)
Furthermore, if the Doha round triggers domestic reforms, welfare gains are enormous despite the fact that the aggregate level of its agriculture protection has been moved within the effective liberalization and needs to convince other developing countries that most of the gains that developing countries will get from freer trade will come from their own liberalization within the useful trading powers as crucial for the long-term credibility of the multilateral trade regime. (2005) The link between market opening and removal of distortions and the promotion of growth and development was simple and unambiguous in the minds of the WTO members during the past years. This explicit and straightforward message, which is the basis of our system, is often put into question today, even if then and now it must be nuanced by internal factors and policies in each country. (2005)
The subjects of negotiation set forth in the Ministerial Declaration of 1986 were challenging: bringing agriculture into the system, integrating textiles and clothing fully into the GATT, elaborating rules on intellectual property, establishing a framework for disciplines in services, strengthening the procedures for dispute settlement, in addition to cutting tariffs, reducing subsidies and improving the set of rules on trade in goods. In a way, the current Round: the Doha Development Agenda, with its focus on development and spotlight in agriculture, is the continuation, the expansion and improvement of the results of the Uruguay Round. (2006) A comparison between what was achieved in the Uruguay Round in the main areas of negotiation, and what is currently being proposed, shows how much would be lost, if this Round were not to be concluded with success. In this Round, Members have already agreed on a number of measures and commitments which will substantially increase the predictability and market access for services providers. WTO Members have also agreed to a plurilateral approach of request and offer negotiations, to complement the bilateral approach. (2006) Thus, core services sectors such as financial services, telecommunications and environmental services are due to produce tangible gains in the negotiations in terms of increased market access. The Doha Development Agenda contains several issues which were not covered in the Uruguay Round. (2006)
The moving of goods through the borders has the effect of significantly increasing domestic prices and restricting businesses. As General Lamy said, ‘we should realize that everything depends on the spirit in which we approach this round. If we fail to overcome existing prejudices, we will be unable to find solutions, and it is only too clear that there are no simple solutions. Lamy said that the people should make an effort not to close ourselves in behind walls, but to extricate themselves and bring about a new renaissance’ (2005) Aside, globalization has enabled individuals, corporations and nation-states to influence actions and events around the world faster, deeper and cheaper than ever before and equally to derive benefits from them. It has the potential for expanding freedom, democracy, innovation, social and cultural exchanges while offering outstanding opportunities for dialogue and understanding. Aside, there is a widening gap between global challenges and the traditional ways of working out solutions, our traditional institutions. Globalization is at the same time a reality and an on-going process that cannot be met by nation-states alone. (2006) Globalization reveals a new sphere of common interests that transcends States, cultures and national histories.
As Lamy said that the people need to go beyond the classical inter-nations system. Indeed, the disproportion between the enforcement role of States and their actual capacity to handle issues calls for new forms of governance although transparency remains crucial to ensure that governments are both accountable and challengeable at home, classical definitions of domestic accountability and democracy cannot be simply transposed and applied in the international institutions context. (2006) The basic value underpinning the WTO is that market opening is good. The multilateral trading system helps to increase economic efficiency and it can also help reduce corruption and bad government. At the same time the WTO also recognizes the importance of values other than market opening and trade efficiency. First, in its Preamble the WTO agreement recognizes sustainable development as one of its objectives. This calls for the consideration of fundamental values other than those of market opening to include, for instance, the protection of the environment, development as well as social values. WTO Members have the right to deviate from market opening obligations to favour values of public morals, the protection of health of people, animals or the conservation of natural resources. (2006)
Moreover, pursuant to the WTO agreement, each member is free to determine the values to which it gives priority and the level of protection it deems adequate for such values. The WTO Trade Policy Review Mechanism enables the regular collective evaluation and appreciation of WTO Members’ trade policies and practices and their impact on the functioning of the multilateral trading system. Through greater transparency and understanding of trade policies, this review mechanism contributes to improved adherence by all Members to rules, disciplines and commitments made under the WTO agreements. The on-going negotiations will reinforce this surveillance in the crucial area of regional trade agreements concluded by the Members. (2006)
THE DOHA MANDATE from the November 2001 WTO rules: regional trade agreements
(Par 29): There is agreement to negotiations aimed at clarifying and improving disciplines and procedures under the existing WTO provisions applying to regional trade agreements. ( 2001) The negotiations shall take into account the developmental aspects of regional trade agreements. WTO rules say regional trade agreements have to meet certain conditions. But interpreting the wording of these rules has proved controversial, and has been a central element in the work of the Regional Trade Agreements Committee. ( 2001) The outcome entail, since 1995 the committee has failed to complete its assessments of whether individual trade agreements conform with WTO provisions. It is now an important challenge, particularly when every member governments are parties to regional and international trade agreements that are negotiating them and or are considering negotiating them. . ( 2001) In the Doha Declaration, members agreed to negotiate a solution, giving due regard to the role that these agreements can play in fostering development.
As for them, the collapse of the Doha round opens up a crucial new public space for debating what sort of rules we wish to put in place to govern the global economy in the 21st century. . ( 2001) Instead of the WTO’s determined belief in free trade as the dominant model for the world economy, individuals can now have an open debate over other approaches that prioritise trade justice and sustainable development over neoliberal economics. (2006) This opportunity to debate alternatives is why civil society groups in the global south have overwhelmingly welcomed the collapse of the Doha talks. ( 2001) The international community must use the breathing space granted by the collapse of the WTO talks to debate these genuine alternatives. There should be no attempt to resuscitate the Doha corpse. (2006)
CONCLUSION
Therefore, for some critics, the existence of sanctions allows trade to take precedence over other sectors of international trade organizations in WTO governance that basically includes health, the fundamental human and social rights. The experience has showed that, the WTO has been sensitive to maintaining the balance between trade and non-trade values by giving its economic and political dimensions, the WTO can be a fundamental player in the building of a system of global trading influences under the right jurisdiction and proper governance. So, there is still hope that, WTO members consider the contribution implying the fact that WTO in its DOHA principles, can positively make assurance and ensures that globalization works to the benefit of one and many international trade today as business firms may then reflect on the resumption of the negotiations under the Doha Development Agenda respectively. (2006)
_____________________________
Credit:ivythesis.typepad.com
0 comments:
Post a Comment