World trade organization
One should probably start an argument on the issue of the Group of 21proposals with a statement from Oxfam International's 2002 report RiggedRules and Double Standards: "the problem is not that international trade isinherently opposed to the needs and interests of the poor, but that therules that govern it are rigged in favor of the rich.' Starting from this,I aim to prove not only that WTO's role is almost exclusively in favor ofthe rich, but also that the important players in the WTO system do notabide by the very rules that they have created. The recent Cancun round of negotiations within the WTO, regardingespecially agricultural subsidies, showed that finally the developingcountries starting with giants such as India and Brazil, preponderantlyagricultural countries with significant contribution to world trade, backedup by China, could finally make a common point and a stand still againstthe European Union and the United Stated. The strange and somewhatrevolting point of discussion is that, while boasting liberalization andfree trade, the EU and the United States spent an approximated $300 billionin subsidies, almost all of them going to agriculture. Isn't a subsidy a
This can be used as athreat or as a blackmail to get things moving within the WTO, as KantathiSuphamongkhon, Thailand's trade representative has clearly stated out. In the midst of talks abouta global economy, the issue of a global environment and its protection mustalso be addressed. What is the point of continuous negotiations for lowering taxeson imported products when, on the other hands, the likes of the UnitedStates can, by themselves, raise taxes on a product that is essential tomany of the G-21 countries industrial national production' As highofficials from the IMF, the WTO and the World Bank, including Horst Kohler,Mike Moore and James Wolfensohn, have asked themselves: "How can leaders indeveloping countries argue for more open economies if leadership in thisarea is not forthcoming from wealthy nations'". There is another issue of growing concern for the G-21 countries andthat is an increased wave of regionalization outside the WTO that can be ofno help for the developing countries. As forthe environment concern, more incidents such as the ones in India orHungary will only damage the global ecosystem. There are two issuesthat need to be addressed here: one concerns improved working conditionsfor local employees in developing countries, the second an increasedprotection for the environment. The United States have alreadynegotiated separate free trade agreements with Chile, Singapore, Israel andJordan. These are compensating measures for freetrade, profitable for the developed countries. The social issues that we havereferred to here are mainly a concern for local environment and improvedworking conditions. It seems that at the momentdeveloped countries are most interested in profiting from the poverty andsocial inequality in developing countries, seeing these as productivefactors that will ensure lower costs. As Campolina Soares from the ActionAid has stated, "poor countriesare no longer willing to accept any kind of agreement that will notsubstantially change the current unfair trade rules". The G-21 countries cannotalways compete with the developed countries in what the quality of theproduct is concerned. Talks and negotiations within the WTO have come to a standstill,mainly because of a disagreement regarding the export subsidies that thedeveloped countries provide. This will mean aneasier access for their products to developing countries markets and thiscould be seriously in the disadvantage of developing countries. If free trade is to beaccepted, than it should be compensated by developed countries, the mainbeneficiary from it, with social measures in developing countries.
Common topics in this essay:
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European Union,
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James Wolfensohn,
Soares ActionAid,
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Acceptance Essays
