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History Bretton Woods System:
John Maynard Keynes and Harry Dexter White at the Bretton Woods Conference – both economists being strong advocates of a liberal international trade environment, recommended the establishment of three institutions: The International Monetary Fund (IMF) for fiscal and monetary issues.
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2.The World Bank for financial and structural issues. 3.The International Trade Organization (ITO) for international economic cooperation. The Bretton Woods Conference had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II. As governments negotiated the ITO, 15 negotiating states began parallel negotiations for the GATT as a way to attain early tariff reductions & ensure a stable trade and economic world environment. Once the ITO failed in 1950, only the GATT agreement was left.
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GATT: The GATT (typically abbreviated GATT), which was then signed in 1947, is a multilateral agreement regulating trade among about 150 countries. According to its preamble, the purpose of the GATT is the “substantial reduction of tariffs and other international trade barriers, the elimination of preferences, reduction of tariff barriers, quantitative restrictions & subsidies on trade thru a series of agreements, on a reciprocal and mutually advantageous basis.” By then, GATT was a treaty, not an organization. The history of the GATT can be divided into three phases: 1.From 1947 until the Torquay Round, largely concerned which commodities would be covered by the agreement and freezing existing tariff levels.
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2.From 1959 to 1979 encompassing three rounds, focused on reducing tariffs. From 1986 to 1994 consisting only of the Uruguay Round, extended the agreement fully to new areas such as tariff, intellectual property, services, capital, investment measures & agriculture.
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The Uruguay Round, which was completed on December 15, 1993 after seven years of negotiations, resulted in an agreement among 117 countries (including the U.S.) to reduce trade barriers and to create more comprehensive and enforceable world trade rules. The agreement coming out of this round, the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations, was signed in April 1994. The Uruguay Round agreement was approved and implemented by the U.S. Congress in December 1994, and went into effect on January 1, 1995. WTO: This agreement also created the World Trade Organization (WTO), which came into being on January 1, 1995. The WTO implements the agreement, provides a forum for negotiating additional reductions of trade
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The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. and importers conduct their business. negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. 5 . conducting rounds of talks addressing various trade issues and resolving international trade disputes. there have been negotiations on topics such telecommunications services. The goal is to help producers of goods and services. GATT functioned de facto as an organization. information technology products. Since the end of the Uruguay Round. exporters. and financial services.barriers & for settling policy disputes. At its heart are the WTO agreements. Until the establishment of the WTO. & enforces trade rules.

New member: Oman. Established: 1st January 1995. Created by: Uruguay Round negotiations (1986-94). Switzerland.Fact File Location: Geneva. Membership: Countries on map. 151 countries (on 27 July 2007). Budget: 182 million Swiss francs for 2007. 6 . Secretariat staff: 625. Head: Pascal Lamy (Director-General).

the dispute settlement mechanism has been considerably strengthened in the WTO. 7 . Also. & was serviced by a provisional Secretariat. The WTO now provides a permanent institutional framework for the multilateral trading system. the WTO covers trade in goods.Difference between WTO & GATT For several decades. However. It has its own Secretariat. it was without a permanent institutional framework. it also covers trade in services and trade-related aspects of intellectual property rights. Like the GATT. the General Agreement on Tariffs and Trade was applied on a provisional basis Although it operated like a permanent agreement.

GATT and WTO trade rounds Duratio Count Subjects Achievemen Name Start n ries covered ts Signing of GATT. 45.000 tariff Gene April 7 23 Tariffs concessions va 1947 months affecting $10 billion of trade Annec April 5 13 Tariffs Countries y 1949 months exchanged 8 .

Septe Torqu mber ay 1950 8 months 38 Gene va II Janua ry 1956 5 months 11 months 26 Septe Dillon mber 1960 26 Kenne May dy 1964 Tokyo Septe mber 1973 37 months 74 months 62 102 some 5.000 tariff concessions Countries exchanged some 8. Tariff non-tariff reductions measures. $2.700 tariff Tariffs concessions . concessions Antiworth $40 dumping billion of world trade Tariffs.5 billion admission in tariff of Japan reductions Tariff concessions Tariffs worth $4. worth more "framewor than $300 k" billion 9 .9 billion of world trade Tariff Tariffs. cutting the 1948 tariff levels by 25% Tariffs.

(about 40%) etc and agricultural subsidies. major agricultur reductions e. and services.Urugu Septe ay mber 1986 87 months 123 agreemen dollars ts achieved Tariffs. The round non-tariff led to the measures. extended intellectua the range of l property. leading to . creation in tariffs of WTO. an agreement to allow full access for textiles & clothing from developing countries. & an extension of intellectual 10 . trade dispute negotiations settlement . textiles. creation of rules. WTO.

investmen t.. labor standards. and plurilateral committees.property rights. except the Appellate Body. transpare ncy. all WTO members may participate in all councils. Dispute Settlement panels. non-tariff measures. Highest level: Ministerial Conference: The topmost decision-making body of the WTO is the Ministerial Conference. not yet competitio concluded. patents etc Nove Doha mber 2001 ? 141 Formal Structure According to WTO rules. etc. agricultur e. which has 11 . environme The round is nt. n. Tariffs. committees.

2. It has representatives (usually ambassadors or equivalent) from all member governments and has the authority to act on behalf of the ministerial conference which only meets about every two years. all of which are countries or separate customs territories. meets regularly to carry out the functions of the WTO. usually represented by ambassadors or equivalent. All three consist of the same membership — representatives of all WTO members — but each meets under different rules. The council acts on behalf on the Ministerial Council on all of the WTO affairs. The General Council. The Dispute Settlement Body is made up of all member governments. the Dispute Settlement Body. Bruce GOSPER (Australia). and the Trade Policy Review Body. 12 . the WTO’s highestlevel decision-making body in Geneva. It brings together all members of the WTO.to meet at least every two years. Second level: General Council: The daily work of the ministerial conference is handled by three groups: the General Council. Mr. The current chairman is H.E. 1. The Ministerial Conference can make decisions on all matters under any of the multilateral trade agreements.

The current chairperson is H. The TPRB is thus open to all WTO Members. Mr. 1. Council for Trade in Goods — The workings of the General Agreement on Tariffs and Trade (GATT) which covers international trade in goods. The WTO General Council meets as the Trade Policy Review Body (TPRB) to undertake trade policy reviews of Members under the TRPM. regional trading arrangements & administrative issues. It is made up of representatives from all WTO member countries. Council for TradeRelated Aspects of Intellectual Property Rights. Yonov Frederick AGAH (Nigeria). are the responsibility of the Council for Trade in Goods. The current chairperson.E. Mr.E. six other bodies report to the General Council reporting on issues such as trade & development.The current chairperson is H. as of 200702-13. 3. Apart from these three councils. Third level: Councils for Trade: The Councils for Trade work under the General Council. Yonov Frederick Agah (Nigeria). is Amb. Mario MATUS (Chile). There are three councils — Council for Trade in Goods. environmentalism. & Council for Trade in Services — each council works in different fields. 13 .

market access. dealing with specific subjects such as agriculture. Council for Trade in Services — The Council for Trade in Services operates under the guidance of the General Council and is responsible for overseeing the functioning of the General Agreement on Trade in Services (GATS). It has 11 committees consisting of all member countries. Committees include the following: • • Information Technology Agreement (ITA) Committee. and can create subsidiary bodies as required. The Goods Council — subsidiary under the Council for Trade in Goods.2. 1. 14 . State Trading Enterprises. antidumping measures & so on. subsidies. 3. Council for Trade-Related Aspects of Intellectual Property Rights — Information on intellectual property in the WTO. Fourth level: Subsidiary Bodies: There are subsidiary bodies under each of the three councils. It is open to all WTO members. news & official records of the activities of the TRIPS Council. & details of the WTO’s work with other international organizations in the field.

The Services Council — subsidiary under the Council for Trade in Services which deals with financial services. o Balance of Payments Restrictions. 3. o Budget. o Regional Trade Agreements.• • Textiles Monitoring Body — Consists of a chairman & 10 members acting under it. Dispute Settlement panels & Appellate Body. domestic regulations & other specific commitments. 15 . Working groups on o Trade. o Trade & Development (Subcommittee on Least-Developed Countries). debt and finance. 2. Groups dealing with notifications — process by which governments inform the WTO about new policies &measures in their countries. Working parties on o Accession.subsidiary under the Dispute Settlement Body to resolve disputes and the Appellate Body to deal with appeals. Finance & Administration. Other committees: • • • Committees on o Trade & Environment.

when they occur in other countries. and relative market size is the primary source of bargaining power. WTO negotiations proceed not by consensus of all members. one vote system.o Trade & technology transfer. but by a process of informal negotiations between small groups of countries. but actual votes have never been taken. Such negotiations are often called "Green Room" negotiations (after the colour of the WTO Director-General's Office in Geneva). or "Mini-Ministerials". Decisionmaking is generally by consensus. Main disadvantages include large time requirements and many rounds of negotiation to develop a consensus decision. 16 . The WTO operates on a one country. These processes have been regularly criticized by many of the WTO's developing country members which are often totally excluded from the negotiations. In reality. and the tendency for final agreements to use ambiguous language on contentious points that makes future interpretation of treaties difficult. The advantage of consensus decision-making is that it encourages efforts to find the most widely acceptable decision.

There are a number of ways of looking 17 .Features The WTO is an international organization designed to supervise & liberalize international trade.

The second WTO ministerial meeting. It is operating since five years as an international organization. but its trading system is half a century older. The WTO began life on 1 January 1995. 1995. & everything the WTO does is the result of negotiations. to try to sort out the trade problems they face with each other. which was created in 1947. It’s a place for them to settle trade disputes. The WTO came into being on January 1. It’s a negotiating forum.at the WTO. It operates a system of trade rules. The WTO was born out of negotiations. Born in 1995. the GATT had provided the rules for the system. but not so young. Essentially. & is the successor to the GATT. It’s a forum for governments to negotiate trade agreements. The WTO is the most powerful legislative & judicial body in the world. The bulk of the WTO's current 18 . the WTO is a place where member governments go. The first step is to talk. included a celebration of the 50th anniversary of the system. The WTO deals with the rules of trade between nations at a global or near-global level. held in Geneva in May 1998. Since 1948.

while allowing governments to meet social and environmental objectives. including those painstakingly negotiated in the WTO system. They are essentially contracts. It helps to settle disputes. Although negotiated & signed by governments. under the “Doha Development Agenda” launched in 2001 It’s a set of rules. At its heart are the WTO agreements. negotiated & signed by the bulk of the world’s trading nations. The WTO is currently the host to new negotiations.work comes from the 1986-94 negotiations called the Uruguay Round & earlier negotiations under the GATT. That is the purpose behind the dispute settlement process written into the WTO agreements. Trade relations often involve conflicting interests. These documents provide the legal ground-rules for international commerce. the goal is to help producers of goods & services. often need interpreting. This is a third important side to the WTO’s work. 19 . exporters. The most harmonious way to settle these differences is through some neutral procedure based on an agreed legal foundation. binding governments to keep their trade policies within agreed limits. & importers conduct their business. Agreements.

who is appointed by the Ministerial Conference.The WTO is a rules-based. member-driven organization .all decisions are made by the member governments. Switzerland. predictably & freely as possible". & a directorgeneral. specifically by lowering trade barriers & providing a platform for negotiation of trade. The WTO is governed by a Ministerial Conference. Functions The WTO's stated goal is to improve the welfare of the people of its member countries. This main mission is further specified in certain core functions serving & safeguarding five 20 . a General Council. The WTO's headquarters are in Geneva. Its main mission is "to ensure that trade flows as smoothly. which meets every two years. & the rules are the outcome of negotiations among members. which implements the conference's policy decisions & is responsible for day-to-day administration.

these are regarded by analysts as the most important: • • It oversees the implementation. Finally. the IMF & the World Bank & other international organizations. Another priority of the WTO is the assistance & training of developing. the WTO cooperates closely with the two other components of the Bretton Woods system. Additionally. Among the various functions of the WTO. & to ensure the coherence & transparency of trade policies through surveillance in global economic policymaking. it is the WTO's duty to review the national trade policies. The WTO is also a center of economic research & analysis: regular assessments of the global trade picture in its annual publications & research reports on specific topics are produced by the organization. which are the foundation of the multilateral trading system. leastdeveloped & low-income countries in transition to adjust to WTO rules & disciplines through technical assistance. administration & operation of the covered WTO trade agreements. cooperation and training. It provides a forum for negotiations & for settling disputes.fundamental principles. 21 .

it is concerned with setting the rules of the trade policy games. i. and intellectual property. Non-Discrimination.Principles of the trading system The WTO establishes a framework for trade policies. It has two major components: the most favored nation (MFN) rule. Grant someone a special favour & you have to do the same for all other WTO members. but their precise scope and nature differ across these areas.e. a WTO member has to grant the most favorable conditions under which it allows trade in a certain product type to all other WTO members. & the national treatment policy. That is. National treatment means that imported and locally-produced goods should be treated 22 . The MFN rule requires that a WTO member must apply the same conditions on all trade with other WTO members. Both are embedded in the main WTO rules on goods. Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO: 1. it does not define or specify outcomes. services.

the complaining country may invoke the WTO dispute settlement procedures. If satisfaction is not obtained.g. A related point is that for a nation to negotiate. discriminating against imported goods). security standards et al. & a desire to obtain better access to foreign markets. technical standards. The tariff commitments made by WTO members in a multilateral trade negotiation and on accession are enumerated in a schedules (list) of concessions. it is necessary that the gain from doing so be greater than the gain available from unilateral liberalization. These schedules establish "ceiling bindings": a country can change its bindings. 3. reciprocal concessions intend to ensure that such gains will materialize. Reciprocity. It reflects both a desire to limit the scope of free-riding that may arise because of the MFN rule. 23 . but only after negotiating with its trading partners. Binding & enforceable commitments. 2. which could mean compensating them for loss of trade.equally (at least after the foreign goods have entered the market) & was introduced to tackle non-tariff barriers to trade (e.

& provisions permitting intervention in trade for economic reasons. & to notify changes in trade policies to the WTO.4. Safety valves. articles aimed at ensuring "fair competition". to maintain institutions allowing for the review of administrative decisions affecting trade. Advantages of WTO. to respond to requests for information by other members. Transparency. In specific circumstances. These internal transparency requirements are supplemented and facilitated by periodic country-specific reports (trade policy reviews) through the Trade Policy Review Mechanism (TPRM). 5. There are three types of provisions in this direction: articles allowing for the use of trade measures to attain non economic objectives. 24 . governments are able to restrict trade. The WTO system tries also to improve predictability & stability. discouraging the use of quotas and other measures used to set limits on quantities of imports. The WTO members are required to publish their trade regulations.

1. the system does contribute to international peace. This sound like an exaggerated claim. in the numbers of products traded. 25 . To some extent the WTO has been successful in promoting greater free trade. • Greater competitiveness. Free trade has many advantages: • Lower prices. The 10 benefits of the WTO are: The system helps to keep the peace. As trade expands in volume. & if we understand why. we have a clearer picture of what the system actually does. and in the numbers of countries & companies trading.The WTO is a body designed to promote free trade through organising trade negiotiations & act as an independent arbiter in settling trade disputes. The system allows disputes to be handled constructively. Nevertheless. there is a greater chance that disputes will 2. • Increased growth. & it would be wrong to make too much of it.

5. movies. But it does reduce some inequalities. 4. clothing & other products that used to be considered exotic. A system based on rules rather than power makes life easier for all. 6. are affected by trade policies. cut flowers from any part of the world. 26 . and everything else in between. foods. 3. music. The WTO system helps resolve these disputes peacefully and constructively. giving smaller countries more voice. It gives consumers more choice. Freer trade cuts the cost of living. Trade raises incomes. Think of all the things we can now have because we can import them: fruits & vegetables out of season.arise. We are all consumers. our necessities & luxuries. The WTO cannot claim to make all countries equal. The prices we pay for our food and clothing. & at the same time freeing the major powers from the complexity of having to negotiate trade agreements with each of their numerous trading partners. books. all sorts of household goods. & a broader range of qualities to choose from. & so on.

In practice there is often factual evidence that lower trade barriers have been good for employment. 27 . Many of the benefits of the trading system are more difficult to summarize in numbers. which adds to incomes . Nevertheless. 8. The GATT-WTO system which evolved in the second half of the 20th Century helps 9. & they make life simpler for the enterprises directly involved in trade and for the producers of goods & services. But the picture is complicated by a number of factors. The basic principles make the system economically more efficient. the alternative – protectionism . Trade stimulates economic growth.Lowering trade barriers allows trade to increase.is not the way to tackle employment problems. & they cut costs. They are the result of essential principles at the heart of the system. but they are still important.national incomes & personal incomes. But some adjustment is necessary. 7. Trade clearly has the potential to create jobs. & that can be good news for employment. The system shields governments from narrow interests.

In fact free trade has many disadvantages In response to this the WTO may say that free trade has been an important engine of growth for developing countries in Asia. that means greater certainty & clarity about trading conditions. The system encourages good government. it is difficult to reverse. 28 . 10. the WTO has often been criticized for ignoring the plight of the developing world. Disadvantages of Free Trade However. once a commitment has been made to liberalize a sector of trade. The rules also discourage a range of unwise policies.governments take a more balanced view of trade policy. Governments are better placed to defend themselves against lobbying from narrow interest groups by focusing on tradeoffs that are made in the interests of everyone in the economy. For businesses. It is argued the benefits of free trade accrue mostly to the developed world. For governments it can often mean good discipline. Under WTO rules.

The government of India has made a number of commitments to WTO which are: 1. Removal in Quantitative Restrictions: India had to phase out all quantitative restrictions on 1429 items by April 1.Although there may be some short term pain. 1999. Commitments under TRIPS: The USA & European Union complained to WTO that India had failed to meet its commitment to bring an amendment in patent act for granting of exclusive marketing rights (EMR) in India to an international company. The Government of India in line with WTO agreement removed quantitative restrictions on 714 items in the EXIM policy announced on March 31. 2001. 2001. The ruling of WTO dispute settlement panel made it obligatory for Indian government to make appropriate amendments in Patents Acts. it is worth it in the long run. 1970 by April 19. The government 29 . 3. India’s commitment to WTO India is one of the founder members of WTO. Reduction of Tariff: India has committed to WTO to reduce tariff on non agricultural & non textile goods. 2.

So the Government of India amended Trade & Merchandise Marks Act. The Foreign Service providers will be allowed to enter into these activities. chemicals & agricultural products o an international company.of India amended Patent Act in March 1999 that grants EMR for given period in field of pharmaceutical. Commitments under GATS: Under the General agreement on Trade in Services (GATS). the developing country had a transition period of 5 years during which they could continue to maintain measures inconsistent with agreement provided they were duly notified. 6. Commitments related wit Trademarks: Under WTO agreement the member nations should protect the service trade & merchandise marks. India has made commitment to WTO in 33 activities. 5. 30 . The Government of India notified to WTO regarding the local requirement in the production of pharmaceutical products. 4. Commitment under TRIMs: Under TRIMs agreement. 1958 & passed it in parliament in 1999.

The bill related with industrial design & layout design was cleared by parliament in December 1999. Commitments related to Industrial design & Layout design of integrated circuit: Under WTO agreement the Government of India has committed to protect new industrial design & layout design of integrated circuit. Impact of WTO agreement on Indian economy Signing of WTO had far reaching effects not only on India’s foreign trade but also on internal economy. Favourable Effects 1.7.Expansion in Trade: 31 .

Better prospects of agricultural exports: Under agreement of agriculture. 4.5% to 1%. This will create conditions for fair trade & a more 32 . developed countries will have to reduce subsidies & trade barriers in agriculture. However. Hence India expects to gain higher export earnings from agriculture. dispute-settlement. India as a developing country will continue with agricultural subsidies & higher rate of tariff on imports of agricultural products.The World Bank has estimated that because of Uruguay Round Package. The exports of textile & clothing will increase from India. 2. Benefits from multilateral roles & disciplines: The Uruguay Round Agreement provides for rules & disciplines related to anti-dumping subsidies. etc. 3. Benefits from agreements on textile & clothing: Phasing out of Multifibre Arrangement (MFA) by 2005 will benefit India. India will also gain from it as India’s share in world export will increase from 0. merchandise trade in goods will increase by US$ 745 billion in 2005.

India’s service export has increased. Increase in service export: Due to GATs.favourable environment for India in new world economic order.a. as against 6% annual increase in world export. It is growing at the rate of 13% p. 33 . 5.

Competition in services: There is a big difference in level of services like banking. Indian pharmaceutical industry will be worst affected by TRIPs & its extension to agriculture has serious consequences for India. they will be benefited most. It could prove a drain on foreign exchange reserves in the form of profit transfer of developing countries causing BOP crisis. Trade Related Investment Measures: The agreement protects the interest of foreign investors in developing countries. Since MNCs & developed countries hold large number of patents. 2. insurance.Unfavourable Effects As a member of WTO India is likely to face a number of challenges: 1. 34 . telecommunications between developed & developing countries. 3. Trade Related Intellectual Property Rights: (TRIPS): Agreement on TRIPs is highly weighted in favour of patent holders.

many new challenges are arising in front of Indian economy. Developed country has definite advantage over developing countries. Trade Related Intellectual Property Rights: 35 . 16 countries have put up 13 different non-tariff barriers against India. have hurt experts from developing countries. Hence developed countries force developing countries to sign certain agreements through bribing or threatening. 2. 1. Non-tariff barriers: Various types of non-tariff barriers. which have come up around the globe following the formation of WTO. 4.Therefore GATS will benefit more to developed countries & go against India. WTO challenges & problems for Indian economy As India goes for globalization & opens the market for foreign commodities & investment. Inequality within the structure of WTO: The structure of WTO is such where inequality exists among the members.

Agreement on TRIPS is highly in favour of developing countries. This will certainly serve the interests of developed countries. Trade Related Investment Measures: Developed countries achieved everything they wanted from TRIMS. Now developing countries cannot discourage foreign investment in their economy. But it is silent on controlling restrictive business practices of foreign investment. 4. Agreement on TRIMS provides for parity between home 7 foreign investments. 16 countries have introduced 13 types of non-tariff barriers against India. every WTO member will have to provide 20 years protection to patents & 50 years protection to copyright. Competition in Services: GATS provides for movement of services of different types from one country to another. 3. Under TRIPS. Non-tariff barriers: Use of non-tariff barriers by developed countries after the formation of WTO has affected the exports from developing countries. 5. 6. Agreement on agriculture: 36 .

37 . This agreement is also advantageous to developed countries & will go against the interest of India.Developing countries that did not provide subsidies during 1986-88 will not be allowed to introduce new subsidies. Trespassing of Sovereignty of Nations: WTO is an international body which will not only encourage trade among its members. It will force the member countries to change. But it will also set rules & regulations to be followed by the member nations. amend & introduce laws in accordance with WTO agreements. 7. 8. Protection of environment: It implies that a country like India which has limited resources will have to divert them to environment protection rather than on development of facilities.

The WTO agreements are full of provisions taking the interests of development into account. 2. Sustainable development is a principal objective 3. The WTO is NOT for free trade at any cost. This does NOT take priority over development. 1. In the WTO. The WTO does NOT dictate to governments on issues such as food safety. Many provisions take environmental concerns specifically into account.10 common misunderstandings about the WTO The WTO does NOT tell governments what to do. it’s a “member-driven” organization. request and offer. The WTO does not tell governments how to conduct their trade policies. Rather. and human 5. of give and take. It’s really a question of what countries are willing to bargain with each other. 38 . commercial interests do NOT take priority over environmental protection. 4. The WTO is NOT only concerned about commercial interests.

8. the alternative of protectionism is not the solution. Everyone has to follow the same rules. and therefore the agreements reflect their concerns. 7. Again commercial interests do NOT override. The WTO system offers governments a means to reduce the influence of narrow vested interests. The accusation is inaccurate and simplistic. In any case. The WTO is NOT the tool of powerful lobbies.health and safety. The WTO increases their bargaining power. Small countries are NOT powerless in the WTO. and here the picture is complicated. 6. Safety concerns are built into the WTO agreements The WTO does NOT destroy jobs or widen the gap between rich and poor. 39 . Small countries would be weaker without the WTO. Sometimes adjustments are necessary to deal with job losses. The agreements were negotiated by WTO member governments. Trade can be a powerful force for creating jobs and reducing poverty. Often it does just that.

Aphale Vipul Prakashan Webliography www.com 40 . The WTO is NOT undemocratic. Bibliography TYBCom – Economics .Weaker countries do have a choice. Agreements are ratified in parliaments. they are NOT forced to join the WTO.google. 10.D. that’s even more democratic than majority rule because no decision is taken until everyone agrees. That’s why the list of countries negotiating membership includes both large and small trading nations. Decisions in the WTO are generally by consensus. Most countries do feel that it’s better to be in the WTO system than to be outside it. In principle.Managerial Economics – S. 9.Seth publications FYBMS .

org www.wto.www.com 41 .wikipedia.

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