World Trade Organization

 At nowadays changing environment and rapid changing conditions at the world economy , it
appear to have one big institution handle and organize and give instructions for new world
trade,
 The WTO created in the 1990s to supplant the now-defunct GATT (General Agreement on Tariffs
and Trade), sets rules governing trade and investment among member states.
 There are four fundamental principles of the multilateral trading system:
a) trade without discrimination,
b) predictable and growing access to markets,
c) promoting fair competition,
d) Encouraging development and economic reform.
 All members must be able to meet these four basic principles before receiving accession to the
WTO.
 The Uruguay Round was a series of negotiations involving 125 countries regarding a number of
different topics related to trade. The talks lasted from 1986-1995 and ended in 1995 with the
creation of the World Trade Organization (WTO) and all agreements from the Uruguay Round
went into effect in January 1995.
 World trade Organization ( WTO ) deal with this matter , it try to eliminate the following :
1) Trade Barriers
a) Tariffs
b) Import quotas
c) All barriers in all material respect
 By adapting the new policies and rules of the WTO ,every country will be obligated to follow the
policies and instructions set by the Organization
 All Arab countries import significant volumes of industrial and transport equipment and
technical services yet most can do so only by running up large trade deficits.
 Arab countries will have advantages and disadvantages from entering this organization

 Advantages Vs Disadvantages :

 Arab Countries Like Egypt , Syria , Sudan , Jordan may have advantages from
entering WTO , this is because these are not rich countries depending on Oil reserves
and like Gulf countries depending on exporting oil with extensive importing most
 technology and agriculture products ,these countries are labor intensive one and it
depend on industry and agriculture and services ( Tourism ) ,
 In the other hand same countries will suffer by opening the economy and
eliminate all or most the trade barriers , this is because it will compete
with high industrial and modern ( I.e. US ,UK ) ECONOMIES ,in same time
it will not be able to export for them ,only initial products which in effects
will harm the economy and will close most factories and will increase the
unemployment rate

 To be succeful and take the advantage of entering WTO these courtiers

should focus on the comparative advantages and try to increase it and
specialize on it , and to do so it should focus on education and
liberalization which in turn will lead to increase culture and willing to add
value ,also it should not forget to render subsidy in all material respect for
the industry or agriculture it have seen to have comparative advantage
on it,

 The other side Gulf countries will suffer much ,this is because it have no
manpower nor industrial base to depend on it , so it should focus on
rebuilding the culture of people and make them able to change their
views and thinking type because these courtiers ranked world wide as
consumption countries without adding value to the world economy