WTO

Question 1

WHAT DOES WTO STAND FOR?

Answer 1

WORLD TRADE ORGANISATION

Question 2

WHAT IS THE WTO?

Answer 2

THE WTO IS AN ORGANISATION OF 164 COUNTRIES WHICH AIMS TO PROMOTE GLOBAL TRADE BY ORGANISING NEGOTIATIONS TO REDUCE TRADE BARRIERS E.G TARIFFS AND QUOTAS

Question 3

WHEN WAS THE WTO SET UP?

Answer 3

1995 TO TAKEOVER THE WORK OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)

Question 4

HOW DOES THE WTO WORK?

Answer 4

OVERSEES THE RULES OF INTERNATIONAL TRADE BY:
1. PROVIDING A FORUM FOR SETTING TRADE RULES, WHICH COUNTRIES AGREE BY CONSENSUS
2. POWER TO LEVY FINES WHEN BREAHCES OF GLOBAL TRADE AGREEMENTS HAVE OCCURRED.

Question 5

WHAT R THE BENEFITS OF THE WTO?

Answer 5

1. FACILITATES GLOBAL TRADE (98% OF WORLD TRADE BETWEEN WTO COUNTRIES)
2. HAS LED TO LARGE REMOVAL OF TARIFFS ON GOODS (AVERAGE DOWN FROM 70% TO 2-3%)
3. RESOLVES TRADE DISPUTES

Question 6

WHAT R THE PROBLEMS WITH THE WTO?

Answer 6

1. FAVOURS DEVELOPED NATIONS BY NOT ALLOWING FOR THE GROWTH OF INFANT INDUSTRIES
2. DOESN’T TAKE INTO ACCOUNT NON-ECONOMIC FACTORS E.G WORKERS’ RIGHTS AND THE ENVIRONMENT
3. FAILURE TO COMPLETE DOHA ROUND (DECISIONS MUST BE REACHED BY CONSENSUS)
4. HAS BECOME LESS EFFECTIVE AT REMOVING NON-TARIFF BARRIERS

Question 7

DO THE AIMS OF TRADING BLOCS CONFLICT WITH THE WTO?

Answer 7

TRADE BLOCS MAY SET UP COMMON EXTERNAL TARIFFS THAT CONFLICT WITH WTO RULES.