benefits of joining wto
The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible
Pros:
1)Promotes free-er trade.
2)Raises world out-put levels via specialisation (related to point 1).
3)Establishes a standard rule by law and terms of trade for greater effeciency.
4)Updates all participating countries and banks to international standards and effeciency in terms of trade and commerce.
Cons:
1)Unequal benefits awarded to DCs and LDCs (reference: unfair terms of trade benefit western nations more than they benefit the african nations when the 2 regions trade)
2)Certain DCs such as parts of Africa get marginalised due to lack of participation in world trade.
3)Gives unfair pollitical leverage to larger economies via hegemony.(reference: America making use of economic sanctions and implicit threats of disengagement as a means to intervene into China's domestic affairs such as human rights and ideological governance)
4)Rules and regulations are often ignored, and the organisation is powerless to act against minor oversight. (reference: American protectionism in their steel industries go against the rules of the WTO, China's trade barriers on agriculture go against the ruels of the WTO, all this occurs while the WTO is unable to prevent it)
5)Decisions of the organisation are dominated by larger economies who have more voting power.(related to points 1 and 3)
Evaluation:
Its merits outweight its demerits, yet it is far from perfect, and is more often than not, a means for larger economies to exploit smaller economies in a subtle manner, including empowering larger economies with pollitical leverag to intervene in the domestic affairs of smaller economies. (reference: western exploitation of africa, western hegemony over china)
The WTO is NOT for free trade at any cost
It all depends on what countries want to bargain
Yes, one of
Pros:
1)Promotes free-er trade.
2)Raises world out-put levels via specialisation (related to point 1).
3)Establishes a standard rule by law and terms of trade for greater effeciency.
4)Updates all participating countries and banks to international standards and effeciency in terms of trade and commerce.
Cons:
1)Unequal benefits awarded to DCs and LDCs (reference: unfair terms of trade benefit western nations more than they benefit the african nations when the 2 regions trade)
2)Certain DCs such as parts of Africa get marginalised due to lack of participation in world trade.
3)Gives unfair pollitical leverage to larger economies via hegemony.(reference: America making use of economic sanctions and implicit threats of disengagement as a means to intervene into China's domestic affairs such as human rights and ideological governance)
4)Rules and regulations are often ignored, and the organisation is powerless to act against minor oversight. (reference: American protectionism in their steel industries go against the rules of the WTO, China's trade barriers on agriculture go against the ruels of the WTO, all this occurs while the WTO is unable to prevent it)
5)Decisions of the organisation are dominated by larger economies who have more voting power.(related to points 1 and 3)
Evaluation:
Its merits outweight its demerits, yet it is far from perfect, and is more often than not, a means for larger economies to exploit smaller economies in a subtle manner, including empowering larger economies with pollitical leverag to intervene in the domestic affairs of smaller economies. (reference: western exploitation of africa, western hegemony over china)
The WTO is NOT for free trade at any cost
It all depends on what countries want to bargain
Yes, one of