I. History
A. GATT
a. Developed after WWII
b. By 1994, trade had dramatically increased ("globalization").
c. First set up to negotiate tariffs between countries
d. Fundamental principle: non-discrimination
B. Uruguay round creates the WTO: 1986-1995
a) Fundamental change between GATT and WTO: enforcement capacity
b). Now, agreements to open markets in new sectors
c. Main Point: To open up barriers between countries for more (and faster) circulation of goods and capital.
C. Doha round: the "development" round of trade talks
D. In short, the WTO claims that its overriding objective is "to help trade flow smoothly, freely, fairly, and predictably." It claims to do so by:
III. Advantages.
a. Proponents say the WTO:
1) plays an important role in ensuring world peace
2) reduces inequalities between rich and poor countries and gives smaller countries more voice.
3) makes goods and services cheaper for consumers and increases choices
4) promotes trade that raises incomes
5) stimulates more trade, which means more (and better) jobs
6) Promotes good government
IV. Critiques
1) The WTO is undemocratic and does not increase likelihood of peace.
2) Lets big powerful countries push littler ones around.
3) Free trade lowers incomes for the poor
4) Free trade creates higher unemployment, as people's jobs are threatened by exports from either more technologically advanced countries, or places with cheaper labor.
5) The WTO focuses exclusively on trade. But we have other important issues to consider besides just opening markets.
a) The Environment
c) Labor standards
IV. Results of conflict
A) WTO was largely unopposed until 1999: the Battle in Seattle
B) What will we see in the future?
a) Increased free trade, particularly in agriculture.
b) Increased negotiations with civil society groups.