World TRADE ORGANIZATION & Agreement on internal trade Karlee, Madison, Jillian, Lauren
Main Objective • Mission Statement: “The World Trade Organization- the WTO- is the international organization whose primary purpose is to open trade for the benefit of all.” • WTO ensures that trade flows as smoothly, predictably, and freely as possible.
History • Came to existence January 1st, 1995 • The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. • They say that the Uruguay Round was a successful negotiation because the agreement established the WTOand increased the binding of commitments by both developed and developing countries. • Negotiations were also protested against by people who are against the movement of globalization. • This is an example of the battle in Seattle. • Ended up increasing exposure of WTO in the US media.
People Involved • 157 Members
Benefits • Cut living costs and raise living standards • Settle disputes and reduce trade tensions • Stimulate economic growth and employment • Cut the cost of doing business internationally • Encourage good governance • Help countries develop • Give the weak a stronger voice • Support the environment • Contribute to peace and stability • Be effective without hitting the headlines
Limitations • While focusing solely on trade issues, they are putting aside issues with labor • Ignore conditions of developing countries • Some countries vote on a decision and are not taken into account, where as USA, CA are always listened to.
Interesting Facts • The only international organization dealing with the global rules of trade between nations. • WTO controls 90% of World Trade.
Quiz • How many countries are members? • What is one benefit of WTO? • When was it founded? • WTO is the only international organization dealing with ______? • Looking back at the graph, in 1980 there were approx. ____ members? • A) 40 B) 150 C) 90
History • Agreement on Internal trade (AIT) is an intergovernmental trade agreement signed by Canadian First Ministers that came into force in 1995. • Includes government departments, agencies, commissions and crown corporations of the 10 Canadian Provinces, 3 territories, and the federal government. • Under this agreement, these governments must agree to apply principles of non-discrimination and openness.
Main Objective • The objective of the parties is to reduce and eliminate to anextent, barriers to the free movement of persons, goods, services, and investments within Canada, and to establish an open, efficient, and stable domestic market. • All parties recognize and agree that enhancing trade and mobility within Canada would contribute to the attainment of this goal.
Groups/ Countries Involved • Groups include Canada • Newfoundland and Labrador, Nova Scotia, P.E.I, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, Northwest Territories, Yukon • *Nunavut is not a signatory to the AIT and has an observer status.
Advantages of the Agreement • Opens up the domestic market • Prohibits the establishment of new barriers to internal trade • Free trade (benefits to consumers, more variety, freedom) • Reduces extra costs to Canadian businesses by making internal trade more efficient, increasing market access for Canadian companies, and facilitating work mobility for trades people and professionals • Prohibiting measures that restrict the movement of persons/goods/services • No obstacles concerning trade
Disadvantages of the Agreement • Competition between provinces • Environmental problems • Domestic instability • Decreases self sufficiency as a province (outsourcing)
Specific Benefits to Canada • Saves the Canadian economy billions of dollars each year by reducing barriers to trade • Equal treatment for all Canadian persons/goods/services/investments • Makes Canada more competitive as a country
Quiz • What does AIT stand for? • When did the AIT enter the force? • What groups are involved in the agreement? • Which group is not signatory to the AIT and has observer status? • Under this agreement, specific governments must agree to apply the principles of? Name a few. • Name one advantage of Internal Trade? • Name one disadvantage of Internal Trade? • How would the agreement open up the domestic market? • Name some of the barriers to Internal trade? • What is a specific benefit to Canada?