The World Trade The World Trade OrganisationOrganisation

WTOWTO

An international organisation that An international organisation that promotes free trade by encouraging promotes free trade by encouraging countries to abolish tariffs and quotas. countries to abolish tariffs and quotas.

What they doWhat they do

1. Reduce tariffs, quotas and other 1. Reduce tariffs, quotas and other barriers through negotiation. barriers through negotiation.

2. Introduce rules about global trade. 2. Introduce rules about global trade.

50 years ago trade was generally in goods 50 years ago trade was generally in goods and services, now more and more trade is and services, now more and more trade is in intellectual property. in intellectual property.

3. Settle disputes between countries. 3. Settle disputes between countries.

The WTO intervened in a dispute between The WTO intervened in a dispute between Brazil and the USA. Brazil claimed that the Brazil and the USA. Brazil claimed that the USA was using protectionism against USA was using protectionism against Brazilian cotton. Brazilian cotton.

The WTO sided with Brazil in this case:The WTO sided with Brazil in this case:

This could be seen as a This could be seen as a successsuccess

1. the dispute did no escalate into a full 1. the dispute did no escalate into a full trade war. trade war.

2. the WTO showed that they are able to 2. the WTO showed that they are able to side against the richest and most powerful side against the richest and most powerful country in the world. country in the world.

Settle dispues between Settle dispues between countries. countries.

In 2007 a small trade dispute broke out In 2007 a small trade dispute broke out between Australia and New Zealand about between Australia and New Zealand about New Zealand apples. The WTO is hearing New Zealand apples. The WTO is hearing from both sides and is resolving the from both sides and is resolving the dispute. dispute.

Just imagine if the WTO didn’t exist. Just imagine if the WTO didn’t exist.

Here are their headquarters…Here are their headquarters…

WTO membersWTO members

1990s1990s

The WTO successfully removed tariffs on The WTO successfully removed tariffs on electrical goods. electrical goods.

2000s2000s

The WTO removed all tariffs on garments. The WTO removed all tariffs on garments.

High tariffs remain on agricultural goods. High tariffs remain on agricultural goods.

Would the advantages outweigh the Would the advantages outweigh the disadvantages if the WTO removed disadvantages if the WTO removed barriers to trade in agriculture? barriers to trade in agriculture?

Are the criticisms of the WTO Are the criticisms of the WTO justified?justified?

How successful has the WTO been How successful has the WTO been in its objectives?in its objectives?

2003 December - WTO rules that duties 2003 December - WTO rules that duties imposed by the US on imported steel are imposed by the US on imported steel are illegal. US President Bush removes the illegal. US President Bush removes the tariffs to avoid a trade war with the EU.tariffs to avoid a trade war with the EU.

2011 August - WTO rules that a tax levied 2011 August - WTO rules that a tax levied in the Philippines on imports of alcohol in the Philippines on imports of alcohol breaks global rules on free trade on the breaks global rules on free trade on the grounds that it grants domestic producers grounds that it grants domestic producers who use local cane and palm sugar an who use local cane and palm sugar an unfair advantage. The US has previously unfair advantage. The US has previously urged the Philippines to open its market to urged the Philippines to open its market to foreign alcoholic drinks. foreign alcoholic drinks.

Successes Criticisms

What they want

WTO

••WTO is too powerful, in that it can in WTO is too powerful, in that it can in effect compel sovereign states to change effect compel sovereign states to change laws and regulations by declaring these to laws and regulations by declaring these to be in violation of free trade rules. be in violation of free trade rules.

••WTO is indifferent to the impact of free WTO is indifferent to the impact of free trade on workers' rights, child labour, the trade on workers' rights, child labour, the environment and health. environment and health.