Assignment no 1

The World Trade Organization (WTO)

it is an international organization designed by its founders to supervise and

liberalize (free trade) international trade. The organization officially
commenced on January 1, 1995 under the Marrakesh Agreement, replacing
the General Agreements on Tariffs and Trade (GATT), which commenced in
1947. The World Trade Organization deals with regulation of trade between
participating countries; it provides a framework for negotiating and
formalising trade agreements, and a dispute resolution process aimed at
enforcing participants' adherence to WTO agreements which are signed by
representatives of member governments and ratified by their parliaments.[4][5]
Most of the issues that the WTO focuses on derive from previous trade
negotiations, especially from the Uruguay Round (1986-1994). The
organization is currently endeavouring to persist with a trade negotiation
called the Doha Development Agenda (or Doha Round), which was
launched in 2001 to enhance equitable participation of poorer countries
which represent a majority of the world's population. However, the
negotiation has been dogged by "disagreement between exporters of
agricultural bulk commodities and countries with large numbers of
subsistence farmers on the precise terms of a 'special safeguard measure' to
protect farmers from surges in imports. At this time, the future of the Doha
Round is uncertain.

The WTO has 153 members, representing more than 95% of total world
trade and 30 observers, most seeking membership. The WTO is governed by
a ministerial conference, meeting every two years; a general council, which
implements the conference's policy decisions and is responsible for day-to-
day administration; and a director-general, who is appointed by the
ministerial conference.

Underdeveloped (or in economics terms less-developed) country is simply

one where the resources of the area are not used to their full potential due to
the lack of another resource. Typically you would cite the African wealth of
minerals and lack of technology and machinery.
World Trade Organizations or developed Countries Organization?

In the 16th century, England had a lot of colonies, which were located
in Africa. At that time, the primary function of colonies was to supply
raw materials to England, and England can sell all the finished
products to the colonies in order to make profits. This story is the
beginning of international trade. In the 21st century, international
trade is busier than ever. According to comparative advantage theory,
each country should specialize and produce those products if the
country has a comparative advantage on those products, and use
those products to trade with other countries in order to achieve
specialization and exchange theory. However, during the trade
process, it may have a lot of problems coming out, so a world
organization were established in order to solve those problems and
try to make trade into a smooth process.

Now a question arises that why underdeveloped countries say No to the

WTO?

• communist economic system

A political system in which the government controls the
production of all food and goods, and there is no privately
owned property:
• Disadvantages of Free trade
in response to this the WTO may say that free trade has been
an important engine of growth for developing countries in
Asia. Although there may be some short term pain, it is worth
it in the long run.
• The agenda of the WTO
The implementation of its agreements, and the much-praised
dispute settlement system all serve to advance the interests of
developed countries, sidelining those of the developing
countries.
• The least developed countries (LDCs)
they are marginalized in the world trade system, and their
products continue to face tariff escalations.
• Inequalities in rules
Uniformly applied to WTO members have brought about
inequalities because each member has different economic
circumstances.