WTO IS it good for rich or poor country
Introduction World trade organization (WTO) is the international organization, which helps to increase the world trade by lowering the tariff barriers among the countries. ... On 1st January 1995 GATT’s mission was taken over by WTO. GATT followed by WTO has helped extensively to promote the world trade. ... And the world trade is still on increase due to the system created by WTO. But there has been a debate on the WTO’s stand for the poor countries. The WTO has more than 150 members, out of which three quarter members are developing or least developed countries (LDC) . The benefits of increased trade are en-cashed by rich countries only and developing nations are still far away from these benefits. In the first part of this literature review I will discuss about the need of the international trade organization (GATT/WTO) for the world trade. In the second part I will discuss about the importance of WTO for the international trade and poor countries. In the third part I will discuss, how big economies have violated the WTO rules for their personal interests. And in the last part I will conclude “WTO- Is it good for rich countries or poor”. Need of GATT/WTO for the international trade Trade is the vital driving force of any economy. ... In 1995 GATT’s mission was taken over by WTO. WTO is the organization, which make rules for the smooth flow of trade among the countries. ... Being the member of WTO, countries can get the benefits of low tariffs and trade barriers, same rules of trade with all countries. The creation of WTO has facilitated the international trade and thus helps building better world. Importance of WTO for the international trade and poor countries The importance of the WTO lies in the system that it has created, which facilitates the international trade smoother and freely. The benefits of WTO are as discussed below: 1. ... Being the part of WTO, the governments are confident that others will not raise their trade barriers, they will also not be tempted to raise their. ... But with WTO in existence, countries can turn to WTO to settle the trade disputes. Being the member of the WTO, the poor nations have weight in their voice. The poor nations can dispute the big economies in WTO’s dispute settlement body. There had been many cases when poor nations had disputed and won against rich nations. Rich countries cannot bully poor nations and make them do what is good for their interests. Without WTO small countries would have been powerless against their big and powerful trading partners. ... System is based on rule rather than on power- WTO helps to maintain a system that is based on rule rather than on power. ... This makes the life of both rich and poor countries easier. The big economic nations can use single forum of WTO to negotiate with all or most of trading partners at the same time. ... In the absence of WTO’s system, the powerful trading nations would be freer to impose their will on their poor trading partners. ... WTO helps to increase world trade- The world trade has increased 22 times in magnitude since 1950. ... With the lower trade barriers, the developing countries will be able to exports to the rich markets of the world and thus making good money.