LAWS7853 World Trade Organization - Free Samples to Students

Answer:

Introduction

The world trade organization is a very vital organization whose future life needs to be taken with seriousness. This paper is meant to introduce the learner to the world trade organization and also explore the current issues facing the organization and also the main functions that it undertakes.

The world trade organization refers to an intergovernmental organization which is used to control the global trade. The world trade organization was officially started in the year 1994. It was signed under the Marrakesh agreement and the agreement was signed by approximately 123 nations and which replaced the general agreement signed in 1948 concerning the agreement on tariffs and trade (Matsushita , Schoenbaum , & Mavroidis, 2015). The world trade organization provides a framework for the negotiation of trade agreements and the resolution of disputes between members of WTO. The framework is aimed at ensuring that the member states adhere to the set regulations. Most issues are derived from the previous negotiations of the trade (Matsushita , Schoenbaum , & Mavroidis, 2015).

The predecessor of the world trade organization, the general agreement on tariffs and trade (GATT) was started after the Second World War two to take care of the upcoming multilateral institutions which were committed to the global cooperation. Some of the notable institutions included the World Bank and the international monetary fund among other institutions. Another comparable trade institution of that time which was fully negotiated included the international trade organization (Shaffer , 2014). The international trade organization was meant to be a special agency for the United Nations and its main objective was to address trade barriers and other issues related to trade, unemployment, business practices that are restrictive and the agreements on commodities among others. However, the ITO treaty was not automatically signed by the United States and several other signatories and hence was not so effective (Shaffer , 2014).

The major objectives of the world trade organization included: the improvement of the living standards of people for the member nations, ensuring full employment and an increase in the effective demand, the enlargement of production and the trade of goods and also increment in the service trade, ensuring the optimum usage of the economic resources which are mostly scarce, protection of the surrounding and finally accepting and agreeing on the concept and methodology of sustainable economic development (Barfield, 2014).

The primary functions of world trade organization include:

The implementation of rules and provisions which are related to trade regulations and policies, the provision of a platform to the member countries to make decisions that are related to the trade and tariffs, provision of facilities meant for implementation and the operation of both multilateral and bilateral treaties for the global trade (Barfield, 2014). The organization is also aimed at administering rules and processes that are related to the settlement of disputes, making sure there is a maximum use of the global resources and providing assistance to the global organizations like international monetary fund (IMF) and IBRD for the establishment of coherence in the determination of the Universal Economic Policy (Barfield, 2014).

The world trade organization has been undergoing a serious crisis in the last ten years or so. However, the negotiating function of the organization still remains instilled. The following crises are faced by the world trade organization and are deeply undermining its future existence.

Competing Visions

Many reasons can be discussed under this broad subtopic. However, at the heart of this challenge, there is a competing vision for the WTO. The first vision is the content with WTO 1; A firm which gives priority massively to the bulk of its developing nations and focuses on negotiating the ambition for the fear of consequences that results from overstretching the policies and also the institutional capacities of the member states (Barfield, 2014). The second vision offers a continuous update for the rules and a reflection of the realities of the modern world. The two visions bring misunderstandings between the member states since some nations have no problem with vision 1 but they want other countries to sign a commitment agreement even though their concerns are sacrificed to the paradigm of the first vision.

Movements and Shifts in the Balance of Positions and Power.

The low trade politics are progressively merging with the high politics of the international affairs. The merging of markets that have cropped up in the modern trade and investment has been slowly tilting the equilibrium of the global might away from north and west to the east and south. The latter makes the western and Northern nations who are members of WTO face serious threats and this affects the broader WTO and finally the global trade (Matsushita , Schoenbaum , & Mavroidis, 2015).

The world trade organization is one of the largest trade markets globally and has the responsibility of making sure that rules are implemented and followed to the latter, there is an improvement in the standards of living and also ensure that there is participatory decision making taking place. If the future of the organization deems important to the member states, then it is advisable for the countries to come to the drawing board and discuss on their visions and also discuss on the issues concerning the shifts of power.

Lesson

There is an impending danger in the future of the WTO and the matter needs to be discussed as soon as possible.

Recommendations

From the lessons learned the future of world trade organization is at stake, I would recommend that all member nations of WTO and discuss on the solutions to the current events that are affecting the future of WTO. I would also recommend that there should be a commitment and concrete agreement between and among countries that are members of WTO to trade freely without much disturbances at the entry points.

References

Barfield, C. E. (2014). Free Trade, Sovereignty, Democracy: Future of the World Trade Organization. Chi. J. Int'l L, 2, 23-29.

Matsushita , M., Schoenbaum , T. J., & Mavroidis, P. C. (2015). The World Trade Organization: law, practice, and policy. Oxford University Press.

Shaffer , G. C. (2014). The World Trade Organization. Democracy and the Law Politics of the WTO's Treatment of Trade and Environment Matters. Harv. Envt'l L., 17(2), 25-45.