Principles of the trading system Essay
“The WTO establishes a framework for trade policies; it does not define or specify outcomes. That is, it is concerned with setting the rules of the trade policy games. Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO: 1. Non- discrimination 2. Reciprocity 3. Bindng and enforceable commitments 4. transperency 5. Saftey values”. The object of GATT is to reduce the interference of the governments through out the globe, & to develop the trade & commerce in private sector. GATT is universally recognized.
UNO also recognized it. The members of GATT shall have to adhere to the rules & conditions imposed by it. At present 93% of the global commerce is in the hands of the GATT. GATT solves any conflicts, disputes & discrepancies between the members, just like it is an International Court of Justice (ICJ) in the matters of trade. It controls World Trade & Commerce amicably. Among the already completed rounds where discussions between the member states to formulate riles & regulations. Among them one of the important is “URUGUAY ROUNDS”.
During these rounds only, the most conflicted ‘DUNKEL DRAFT’ was drafted. Later the ‘Doha Round’ is as famous as that which yet
Need essay sample on "Principles of the trading system"? We will write a custom essay sample specifically for you for only $ 13.90/page
And with the name of “Free Trade” they want to repeat it again. If we see the minister level mini-conference of WTO in Geneva, the point about stated may seems right. Constrains: Actually the meeting was conducted to put again the “Doha rounds’ on Track which were suddenly stopped. Geneva conference showed how narrow the developed nation’s ideas were. Developed nations USA, EU are forcing the poor countries to loose some more to implement the already established agreements (Signed).
The discussions on agriculture show clearly that on one side subsidies another side high import taxes by developed countries & EU are destroying the Agricultural sector of poor countries. While decreasing subsidies gradually, remove the import sanctions agriculture is the demand made by the third world countries 10 years back which is still under discussion. At Geneva Convention developed countries used its all intelligence to format the points of discussions. All countries of the world are forcing to USA do 75% cut off on its subsidies on agricultural products.
Developing countries are demanding to decrease the subsidies up to 80% where EU is ready to accept up to 33% only. But EU is ready to decrease subsidies on agricultural products up to 51%. Coming to the point of making strict controls on the list of key products developing countries are saying that there should not be more than 1% of products in that list where as EU is asking for 8%. Even though there are lot of difference in points WTO. Director General Pascal lamely brought a manifesto.
The agri-manifesto prepared was just safeguarding the developed countries which made the G-20 countries angry. The manifesto brought by him is of 72 pages and it contains 750 brackets. Putting brackets on issues where there is no common understanding is the common practice which had been followed in W. T. O. There is no place for the demands of the developing countries. He says that first if we can make an agreement on demands of developed countries then we can look into the demands of third world countries. These types of irrational statements loose its confidence on him and his manifesto.