International business wto (omc)

Pages: 14 (3285 mots) Publié le: 16 mars 2011
Alain Salle

International business

Question 3 :
So far, the WTO has struggled to reach agreement on the Doha Agenda and consequently, in the opinion of some commentators, is losing its relevance. Critically assess the arguments for and against this view.

Introduction
Since 1995, the World trade Organization (WTO) looks after the international business. Its goal is to help producer,exporter and importer to conduct their business. To do that, WTO tries to reduce barriers to free trade. Mainly, “WTO deals with trade rules between countries” ( Comprendre l'OMC, World Trade Organisation). It is frameworks within governments negotiate trade agreements. It is a place for them to settle trade arguments.
The Doha round is a round of negotiations for a period of three years performedunder the auspices of the WTO. It started in 2001. One of its main goals was to improve market access, especially for developing countries. It was expected that poor countries would be exempted to open their markets, benefiting from the open markets of richer countries without reciprocal (Les gagnants et les perdants du statu quo commercial [archive], le monde, 30/07/08). The main point ofdisagreement was the agriculture. Indeed, it was proposed to open markets and reduce, then eliminate, all forms of export subsidies and domestic support to agriculture.
Given the permanent disagreement between states, including the liberalization of agriculture, the Doha round is considered as a failure the July 24, 2006 by Pascal Lamy, Director-General of the WTO (OMC: la libéralisation du commercemondial compromise [archive], Le Devoir, 2006-07-25). For many commentators it has been a failure, and therefore, WTO lost its relevance.
Since end of the 90’s anti-globalization people accuse WTO of promoting economic globalization and trade liberalization. The treaties are accused to encourage more entrepreneurs in rich countries that employees or poor countries.
Instead, some economists, likeJoseph E. Stiglitz, see in WTO an organization developing the principles of commercialism and profoundly distorting those of free trade ( Joseph E. Stieglitz, La grande désillusion, Paris, Fayard, 2002).
In the other hand, “Non-discrimination has been key to the multilateral trading system’s success. The multilateral trading system, based on a uniform set of international rules under which allcountries are treated equally, was designed precisely to avoid a world of inward-looking trade blocs and self-destructive factionalism.” (Mike Moore, Ten Years of the WTO: A Success Story of Global Governance)
“Equally, central to the multilateral trading system is the principle of consensus decision making. Unlike other international agencies, the WTO has no executive body with delegated authorityto take decisions on behalf of member governments.” (Mike Moore, Ten Years of the WTO: A Success Story of Global Governance)
Despite the critiques against the WTO, it is an important organization, which has the power to help developing countries. However, some reforms have to be done to reach these objectives.

WTO, lost of its relevance
In 1985, UNCTAD (United Nations Conference on Trade andDevelopment, United Nations body) states in a report that "the liberalization of services will benefit mainly to multinationals that dominate the global market" (Chloé Maurel, Géopolitique des impérialismes, 2009, p174).
For many anti-globalizations people, the WTO became an organization too powerful. Indeed, thanks the dispute settlement body (DSB), the WTO is the only international organizationwith a capacity to sanction states that do not respect the agreements it has adopted. During a dispute, the state that wins can practice with respect to those who lose a "right of retaliation" in the form of trade sanctions imposed various sectors. DSB is a mechanism de facto reserved for industrialized countries: apply retaliatory measures is unthinkable for a southern state, dependant from a...
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