Vietnam and the World Trade Organization: To Secede or Not?
Vietnam and the World Trade Organization: To Secede or Not?
Abstract
Every year since the World Trade Organization replaced the General Agreement on Tariffs and Trade in 1995, a different country has been inducted as a member of the WTO with hopes of developing harmonious liberalized trade relationships with other members. This phenomenon supports the idea that international economies are becoming more integrated; however, a nation may have certain characteristics which may prevent it from enjoying all the benefits of membership. In the end, the nation may have more to lose. This may be the case of Vietnam, a fast developing nation with a relatively small economy, which joined the WTO in 2007. Although the country will benefit from the WTO dispute mechanism and the increased flow of foreign direct investment and imports, the country can stand to lose in many ways. After joining the organization, Vietnam has experienced underwhelming economic growth and the agricultural sector, which has been a big factor for the economy, has suffered. The country can also face more, extensive welfare losses due to the presence of state-owned enterprises. Vietnam must address specific internal policies to ensure that it can receive as many benefits from WTO guidelines as possible and that adverse side effects are reduced. The downfalls cannot be overlooked and may very well be reasons for the nation to secede from the WTO, 6 years after accession.
Table of Contents
1.0 Introduction……..…..………………………………..........
1
1.1 Globalization……………………………………….......
1
1.2 The World Trade Organization….…………………......
1
2.0 Background of Country…………..…………………..........
2
3.0 WTO Membership Advantages for Vietnam….…………..
2
3.1 Vietnam Benefits in Antidumping Disputes………..….
2
3.2 Enterprises Receives Foreign Direct Investment………
3
3.3 Benefits of Increased Imports ………………………....
3
3.4
Abstract
Every year since the World Trade Organization replaced the General Agreement on Tariffs and Trade in 1995, a different country has been inducted as a member of the WTO with hopes of developing harmonious liberalized trade relationships with other members. This phenomenon supports the idea that international economies are becoming more integrated; however, a nation may have certain characteristics which may prevent it from enjoying all the benefits of membership. In the end, the nation may have more to lose. This may be the case of Vietnam, a fast developing nation with a relatively small economy, which joined the WTO in 2007. Although the country will benefit from the WTO dispute mechanism and the increased flow of foreign direct investment and imports, the country can stand to lose in many ways. After joining the organization, Vietnam has experienced underwhelming economic growth and the agricultural sector, which has been a big factor for the economy, has suffered. The country can also face more, extensive welfare losses due to the presence of state-owned enterprises. Vietnam must address specific internal policies to ensure that it can receive as many benefits from WTO guidelines as possible and that adverse side effects are reduced. The downfalls cannot be overlooked and may very well be reasons for the nation to secede from the WTO, 6 years after accession.
Table of Contents
1.0 Introduction……..…..………………………………..........
1
1.1 Globalization……………………………………….......
1
1.2 The World Trade Organization….…………………......
1
2.0 Background of Country…………..…………………..........
2
3.0 WTO Membership Advantages for Vietnam….…………..
2
3.1 Vietnam Benefits in Antidumping Disputes………..….
2
3.2 Enterprises Receives Foreign Direct Investment………
3
3.3 Benefits of Increased Imports ………………………....
3
3.4
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