Benefits of WTO Trading System Essay
The bright future of the WTO can also be taken in the context of its necessity. The World Trade Organization is considered as necessary in international trade because the organization establishes rules and structures for international trade that provide security and stability for the nations’ commerce (Kaplan 2005).
Without the World Trade Organizations, countries will be free to impose trading practices and policies that can be detrimental to the interest of other countries.More powerful countries are more likely to devour smaller economies in international trading competitions as more powerful and influential countries would be freer to impose their will unilaterally on their smaller trading partners (“The 10 Benefits”). The situation will thus result to an imbalance in the international economy with greater of the world’s wealth remaining in the hands of the already affluent countries.With the growing popularity of free trade and globalization, more countries offer similar products that they consider to have their comparative advantage resulting to stiff competition and even friction in the international market.
It is therefore inevitable that disputes will arise. Without the World Trade Organization, countries facing trading frictions may not be able to settle the problems themselves as other means of “settlement” may be resorted to. This situation may lead to more serious disputes and conflicts.The WTO is thus necessary in that it provides a venue for countries to report violations; establishes sets of agreements and rules through which countries are subject to abide; and provides an opportunity for countries to negotiate their disputes thereby preventing more serious conflicts and war . Such as the necessity of the WTO has already been mentioned, it is already evident that nations need the organization. Nations need the WTO because without it, for example, countries may impose unilateral policies that can prove detrimental to other countries such as can be“International Trade” “page_#7” recalled of the protectionist policy imposed by the United States during the Great Depression.
Nations, especially the poor and the developing countries need the WTO because it facilitates negotiations which provide opportunity for the smaller economies to protect their interest. Thus, the WTO protects and provides opportunity to smaller and developing countries that can be otherwise crushed in a trading competition with developed and powerful countries.Smaller economies will have difficulty competing in the international market for reason that international trade competition can be dominated by powerful and rich countries such as Japan, Canada and the United States. This situation in the international market where the less affluent can be easily devoured by the markets of the strong and powerful necessitates the presence of an organization that will oversee fair treatment of all competitors (“Trade, the”).
As such, the WTO would be necessary because through it, the interest of the smaller economies are better protected and even advanced. The organization does this by providing non-discriminatory opportunity for all member states through its most favored nation treatment. The WTO has also been continuously restructured so as to be able to cater not only to the demands of the bigger players but also to cater to the needs of the less affluent countries. The WTO also provides more opportunity to the lesser and developing economies in that smaller countries can enjoy increased bargaining power.
Thus, giving them the assurance that they will not be left behind in a trading competition against powerful and developed countries, allowing them to take advantage of global trading. The World Trade Organization is needed by nations because it helps prevent, mitigate and even negotiate disputes between countries over trading issues. Without the WTO, stiff competition in the international market can turn into disputes and may even result to more serious conflicts such as in the form of political war.The WTO has a structure of policies and regulations that entails conformity among member states establishing acceptable norms in the conduct of international trade. This can prevent instances where countries will curtail trading “International Trade” “page_#8” rights and opportunities of another country because no policy has been set up. Through its set of policies, the WTO prevents the emergence of disputes and issues which would have emerged from unregulated trading relations.
In conclusion, several points have been herein enumerated regarding the WTO, the Doha round and international trade.The Word Trade Organization is the embodiment of a multilateral system and globalization. Through the WTO, trading negotiations such as the Doha trading round is conducted. The developed nations regard Doha as a means of facilitating international cooperation and boosting international trade which can lead to reduction of poverty.
Protestors and the developing countries, however, view the negotiations as otherwise contending that the agenda only give developed nations more control over world trade policies and thus worsen inequality in the rules of trade.The clash in interest and the inflexibility of member nations have resulted to slow progress in the negotiations but hope is still on for consensus and agreements in the Doha rounds. Current trends in globalization also ascertain a brighter future for international trade and the WTO. The future of WTO is positively ascertained in the context that it promotes and regulates free trade and globalization, and in the context of its necessity in international trade and economy.ReferencesBenefits of WTO Trading System n. d, World Trade Organization, viewed 8 Dec.
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