Advise Your Knowledge Of The Essay Example
Advise Your Knowledge Of The Essay Example

Advise Your Knowledge Of The Essay Example

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  • Pages: 7 (1667 words)
  • Published: December 3, 2017
  • Type: Case Study
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The primary concern is to verify assertions made by NGOs and Transnational Corporations about the negative consequences of Ruralia's WTO membership on its economy. However, it remains unclear which economic policies are at risk for developing countries like Ruralia. Is this vulnerability unique to Ruralia or do other developing nations face similar risks? Additionally, why haven't concerns been raised regarding other developing nations? Evaluating susceptibility to WTO/GATT policies requires more information on economic policies. Economic growth is critical as reflected in Principle 4 of the Rio Declaration, which mandates that environmental safeguarding be an essential part of development.

The International Court of Justice, situated in The Hague (Netherlands) at the Peace Palace, acknowledged the significance of balancing economic development and environmental protection in the Gabcikovo-Nagymaros Case. This was a major achievement for susta

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inable development as it marked the first time that this concept had been recognized by the Court. The Permanent Court of International Justice operated from the same location from 1922 until 1946 before being succeeded by the International Court of Justice as the principal judicial organ of the United Nations.

The International Court of Justice has two roles, which are similar to its predecessor in the United Nations Charter. It resolves disputes between countries based on international law and provides legal advice to approved global organizations. If Ruralia is not a member of the WTO, it must communicate any concerns about claims made by NGOs regarding the WTO to the ICJ. Disagreements among WTO members are addressed through procedures at the organization's Dispute Settlement Body only if there is substantial evidence and specific information about those claims.

Non-Governmental Organisations (NGOs) are integral to contemporary internationa

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governance, serving diverse and intertwined objectives. Some organisations are professional bodies while others, such as Friends of the Earth International and Greenpeace International, campaign for specific global societal actions. NGOs can be national, regional or international, with many of the major environmental NGOs based in developed states in the northern hemisphere. National NGOs are growing in importance in developing countries like Ruralia, where they can positively impact development. However, the Prime Minister of Ruralia has received claims from NGOs that the WTO regime is harmful to the country's economy and policy. The effectiveness of NGOs varies based on their seriousness of purpose, funding, research depth, political advocacy skills, methods of pressure and focus. NGOs also coordinate with one another through meetings to align their policies and actions.

Every member state is accountable for adhering to International Law. If an NGO asserts a claim, the state can resolve it through the ICJ or International Arbitral Tribunals. Another option is to negotiate a settlement via diplomatic channels. The primary emphasis is on the state's responsibilities of due diligence rather than individual behavior. While private conduct is assured by the state, its accountability remains direct. In terms of GATT's Dispute Settlement Mechanism, dispute resolution mechanisms such as arbitration and appeal to the World Court were devised, and WTO enforces international trade agreements between nations.

The GATT, General Agreement on Tariffs and Trade, intends to promote free trade and accomplish gradual liberalization through negotiation. It also establishes a fair method of resolving disputes. The Dispute Settlement Process is governed by the Understanding on Rules and Procedures Governing the Settlement of Disputes, which is relevant to all policies under the WTO/GATT's umbrella.

The Dispute Settlement Body aims to promote conciliation between member states. If one member fails to enter into consultation within 30 days of a dispute's occurrence, the requesting member may initiate a hearing at the WTO Dispute Settlement Panel. The panel is responsible for creating panels and adopting their reports and the Appellate Body's recommendations. The Appellate Body monitors rulings and suggestions and permits the suspension of concessions and other requirements in appropriate cases. The Dispute Settlement Body convenes under its own Chairperson and follows its own rules of procedure.

The WTO is responsible for overseeing the implementation, administration, and operations of legally binding 'Multilateral Trade Agreements' among its members. It possesses legal personality and enjoys privileges and immunities akin to a specialized United Nations agency. As a WTO member, Ruralia must agree to the trade regulations set forth by the GATT/WTO. Adherence to these compulsory rules is necessary for continued membership. The rules in place offer potential benefits to developing countries like Ruralia, who can take action accordingly based on proposals from other countries.

The application of General of Most-Favoured-Nation Treatment Article I of GATT applies to the imports and exports of all other countries, as mandated by each member. Ruralia can enjoy the same rights as other developing countries in the WTO, along with highly developed countries. This is beneficial as it puts all countries on an equal footing during trade negotiations and avoids potential bullying from developed nations seeking an unfair advantage. Additionally, under Government Assistance to Economic Development Article XVIII, developing countries are allowed to modify or withdraw tariff concessions through mutual agreement and after compensatory concessions have been made to affected

parties.

The primary focus of this agreement is on developing countries, like Ruralia, and the establishment of trade deals to bolster their economy. It's essential to note that this article from GATT concerns the potential negation of claims made by Non-Governmental Organizations. Article XIX, Emergency Action on Imports of Particular Products, allows importing countries to suspend, withdraw, or modify tariff concessions if a surge in imports threatens to harm domestic producers seriously. Ruralia has the option to forego their obligations to GATT if it's found that a significant increase in imports harms their domestic market and competitive product producers.

In order to temporarily protect its producers, Ruralia has the legal power to enforce restrictions on their domestic trade, which releases them from any GATT obligations they may have. If this scenario does occur, Ruralia is bound by agreement to compensate the exporting country by allowing trade concessions in other areas. Additionally, through its Regional Integration policy, GATT aims to promote international trade by encouraging its members to engage in free trade areas and customs unions. These groups of states have reduced tariffs between themselves and may maintain their own tariffs for all other states, thereby promoting economic integration on a regional level. With WTO membership, GATT encourages its members to participate in these efforts towards facilitating free trade within the global economy.

Ruralia has the opportunity to integrate trade with other members without affecting their vital sector. This can be achieved through Foreign Direct Investment (FDI), whereby a company from one country (the 'home country') owns 10% or more of a foreign company (the 'host country'). This ownership provides significant control rights over the host company.

FDI is commonly seen in wholly-owned subsidiaries but can also take other non-equity forms such as subcontracting, management contracts, franchising, and licensing and product sharing.

Foreign investment is a legal and viable trade option for the sugar cane industry in Ruralia. GATT agreements offer protection for domestic markets, allowing Ruralia to enforce tariff increases as a means of restricting trade to specific WTO members. This protects the sugar cane industry and maintains domestic commodity levels, in line with GATT's second major principle. Sugar cane has a history dating back to ancient India, originating on the island of New Guinea in the South Pacific, and brought to medieval Spain by the Arabs. Spanish explorers then introduced it to the New World. Its production has also played a significant role in the history of various tropical Pacific islands, including Hawaii and Fiji.

After European and American invaders displaced the indigenous communities, the sugar industry became dominant in the islands. Immigration brought workers from Asian countries to cultivate and harvest the crop. The industry's policies had a significant impact on today's island populations, shaping their ethnic composition as well as their politics and society. Brazil plays a critical role in producing sugar cane that serves as both a source of sugar and alcohol for gasohol and biodiesel fuels.

Over 107 countries cultivate sugar cane, with a global production exceeding 1,324 million tonnes. This amount is six times greater than sugar beet production. The top three contributors to this production are Brazil, India, and China, generating over half of the world's total yield. The Bound Tariff Rate agreement established by GATT determines the maximum tariff rate that a WTO member can impose

on one unit of sugar cane, affecting Protection Through Tariffs (PTT).

The purpose of PTT is to aid Ruralia by balancing its trade distribution and allowing it to request trade premiums as required, while BTR is implemented to prevent Ruralia from extorting trade members by demanding excessive premiums that the WTO considers unfair. Through cooperation with the WTO, IMF, and World Bank, there is an increased coherence in global economic policy, providing significant grant and funding opportunities for Ruralia's economic development and the protection of its commodity markets, specifically sugar cane. As a developing country, Ruralia has access to preshipment inspections to prevent over or under-invoicing and avoid fraud related issues, ultimately preventing capital loss and customs duty evasion. The World Bank, in conjunction with IMF, provides over 20 billion dollars in new loans each year and is the world's largest provider of development assistance to developing countries like Ruralia.

12 This agreement for preshipment inspection grants Ruralia the authority and responsibility as a developing country to utilize the benefits offered by the WTO while also imposing limits on its usage. The agreement entails certain obligations that must be upheld, including ensuring that laws and regulations pertaining to PSI conduct are applied in a non-discriminatory and transparent manner.
13 Legally, Ruralia must provide technical assistance to member states engaging in PSI trade, and any disputes arising between Ruralia and an importing country regarding Preshipment Inspection must be resolved through an independent review board. This board appoints a panel of three trade experts who will review and decide upon the matter. The panel's decision is binding for both Ruralia and the PSI party.

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