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.