The WTO. LO: Describe the objectives and functions of the WTO. The World Trade Organisation. is a an international organisation committed to the a goal of free trade. WTO has successfully reduced the average tariff among member countries from about 40% after WWII to about 5% today .
Describe the objectives and functions of the WTO.
The World Trade Organisation
is a an international organisation committed to the a goal of free trade.
WTO has successfully reduced the average tariff among member countries from about 40% after WWII to about 5% today.
With over 160 member states, over 80% are from LDCs.
All members must submit to resolutions that are passed (always unanimously) on a one-country per vote basis.
Any disputes are mediated by the WTO.
is the ongoing integration of national economies into global rather than national markets. It an outcome of growing international trade. Key questions arise:
How much power does this give MNCs?
Does this disadvantage LDCs?
Which countries will dominate?
Why do some fiercely oppose globalisation?
* The last completed round of trade negotiations was dubbed the Uruguay round. It was completed in 1994.* By 2003 its reforms to agriculture trade were estimated to have added more than $9 billion to New Zealand's economy and created 17,600 extra jobs.”
* The latest round of trade talks was initiated in November 2001 by the World Trade Organisation in Doha.* The aim of the round was to reduce poverty by making international trade fairer.* Reducing the use of tariffs and subsidies for agriculture will benefit New Zealand exporters.
Its goal was to favourLDCs ability to develop and prosper from global trade. Many of them have factor endowments in agriculture.
Specifically aimed at reducing protectionism in agriculture, especially in EU and USA (where over $1 Trillion subsidies are provided each year).
These powerful countries demanded “compensation” by means of expanded exports into LDCs – equivalent to their loss of agricultural production.
Talks finally failed in 2008