The World Trade Organization (WTO) is a multilateral trading system; in other words, it is shaped by multilateral agreements between member states based on four principles. The first principle is transparency on trade exchanges and WTO decisions. Members have a transparency obligation such as making public WTO practices, laws and new regulations that may influence the nature of trade and investments. The second principle is non-discrimination which aims to not favour one member to another one. This point can be split into two forms. Firstly, it refers to Most Favoured Nation (MFN) treatment. In fact, goods have to be treated fairly and without discrimination within marketplaces. Secondly, the National Treatment is a safeguard which prevents countries to make imported goods not competitive by applying taxes, charges or even unjustified administrative practices that local products are not subjected to. Reciprocity is also an important feature of the negotiations process. When a country grants a favour to another country, the latter has to make an offer back as well as to the rest of the member states. Finally, progressive trade liberalization principle aims at creating a more free and fairer trade and investments by lowering tariff protections. Importantly, the consensus decision-making wants every single country to agree with the WTO decisions. In theory, there is no influence over member states. How can we identify and asses the economic benefits that might occur as a result of a successful conclusion to the current and recent trade negotiations at the World Trade Organization? How can we use economics to identify the beneficiaries of the current failure to reach an agreement?
[...] This performance is due to the expansion of the EU zone to Eastern countries where factors of production are more advantageous (Berberoglu, B., n.d). Developing world has also benefits from this agreement and results are clear. African continent welcomed $36 billions of FDI inflows in 2007 thanks to the increasing global demand for commodities. South, East and South-East Asian countries increased their FDI inflows by 12% between 2006 and 2007 that is $224 billion in 2007 (World Bank database, 2009). [...]
[...] The GATT and WTO launch sets of negotiations called “Rounds” to make the world trade fairer and freer. Successful negotiations like UR; as all members agreed to implement negotiated measures; has economically impacted the world. However, failure of negotiations within the WTO as Doha Round has benefited to certain countries. The most enterprising round began in 1986 in Punta del Este, Uruguay. This round, commonly called « Uruguay round » has revolutionized the economic relations by implementing rules-based multilateral trading system and has also opened onto the WTO implementation. [...]
[...] (2008), 'Marathon WTO talks collapse in U.S. - India farm row', reuters, available at : http://www.reuters.com/article/idUSL747098220080729 date accessed: 3/01/2010 Marre, B. (2000) 'Vers une démocratie planétaire? Les leçons de la conférence de Seattle', Compte rendu Assemblée Nationale, Paris Martin, W. and Winters, A. (1996) The Uruguay Round and Developing Countries, Press Syndicate of the University of Cambridge, ebook available at: http://books.google.fr/books?id=fnu0hQq- b_UC&printsec=frontcover#v=onepage&q=&f=false Mayer, R. (1998) 'Protectionism, Intellectual Property, and Consumer Protection: Was the Uruguay Round Good for Consumers?', Journal of Consumer Policy, pp195–215 Ministère des Affaires Etrangères France (2009), available at: http://www.doc.diplomatie.gouv.fr/BASIS/pacte/webext/bilat/sf date accessed: 3/01/2010 Moore, M. [...]
[...] (2001) The political economy of the world trading system : the WTO and beyond, Oxford University Press : New York Hoekman, B., Mattoo, A., English, P. (2002) Development, trade and the WTO: a handbook, The World Bank: Washington D.C, ebook, available at: http://books.google.com/books?id=JyM4fo7GlxkC&printsec=frontcover&dq=Develop ment,+trade+and+the+WTO&hl=fr&cd=1#v=onepage&q=&f=false Hossein, H. (2005) 'An economic theory of FDI: A behavioral economics and historical approach' Journal of Social Economics, Vol 34, Issue pp 528- 541, August Howse, R., Trebilicock, M. J. (1995)The regulation of international trade, Routlege, 3rd edition, ebook, available at: http://books.google.com/books?id=Ygu_MRuCS5AC&printsec=frontcover&hl=fr#v=on epage&q=&f=false IMF database, available at: http://www.imf.org/external/data.htm date accessed: 3/01/2010 Krugman, P. [...]
[...] In fact, goods have to be treated fairly and without discrimination within marketplaces (WTO website, n.d). Secondly, the National Treatment is a safeguard which prevents countries to make imported goods not competitive by applying taxes, charges or even unjustified administrative practices that local products are not subjected to. Reciprocity is also an important feature of the negotiations process. Whether a country grants a favour to another country, the latter has to make an offer back as well as to the rest of the member states (Hoekman, B. [...]
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