WTO and Developing World
World Trade Organization currently does not have a clear definition of a developing country. For this paper, we need to know what a developing country is in order to see if accession to WTO actually improves their economic situation and to see if they are treated fairly by the organization and its wealthier members. But we need to understand that since there is no clear definition of a developing country in WTO, we will use the general definition by the World Bank which states that a developing country is "a low- or middle-income country & #8230;in which most people have a lower standard of living with access to fewer goods and services than do most people in high income countries." (Nass et al. 2004, p. 221) Interestingly WTO allows member countries to decide for themselves if they would want to be categorized as a developing nation or a developed one. This is based on various characteristics which may or may not qualify a nation for various provisions meant for developing countries. When we discuss the reasons why WTO is still the desired destination for many developing countries, the case of China comes to mind that has reaped tremendous benefits from trade liberation and subsidies offered to developing countries by WTO. However other developing countries fail to demonstrate much positive impact on their economy due to accession to WTO. For this reason, we shall study the case of China and its accession to WTO in greater detail. We shall first however get an overview of the effects on WTO accession on the economy of developing countries in general and then focus on China precisely. It must be made clear that most developing countries have had to endure serious challenges when they sought accession. The very process of gaining accession indicates the WTO doesn't assign same status to all countries and tends to discriminate between developed and developing countries. China with all its economic and military strength still had to face serious challenges during the long waiting period when it had applied for entry into the WTO.
Effects of Accession to WTO on developing countries
Though not much is known in detail about effects of WTO accession, it is generally believed that there has been no significant impact on the economy of developing countries. Most researches have dealt exclusive with the case of China while they have ignored the other 19 countries that have joined the WTO since 1995 which leaves us with little plausible information on the well-being of member developing countries since accession. Interestingly while some officials of international organizations have tried to highlight the benefits of joining WTO and have claimed that accession results in better trade relations etc. this claim has not been proved by studies. Series of research papers submitted by Rose (2002a, 2002b, 2003, 2004) indicate no statistically proven beneficial impact of accession on the trade flow of developing countries over a fifty year period. Another study by Rose (2003) found that while GATT/WTO accession had resulted in some improvement in bilateral trade, the same was not true for WTO accession alone.
Subramanian and Wei (2003) however find different results. Their research employed techniques that helped then diverge from Rose's method of deriving conclusions. First they specifically studied the impact separately on two set of countries i.e. developed and developing. Secondly they used different techniques for reaching an estimate for bilateral gravity equations that helps in controlling some unpredictable factors. Their findings have thus been very different from Rose papers. They found that industrialized countries witnessed better trade flow with other developed countries after accession and noticed that this flow also improved with developing countries only after the completion of the Uruguay Round.
The case of China
China has been the most prominent example of a developing country's struggle to join the WTO, the challenges it faces and the impact it has had on the country's trade flow. China has been working relentlessly to restructure its economy and prepare it for foreign trade. This has had positive impact on the growth of GDP in the country with real per capita GDP reaching 6.04% from 1978 to 1995 (Maddison, 1998).
The reason why China sought accession must be understood because they would highlight answer the same question for other developing countries as well. The reforms introduced by China have had serious positive impact on the foreign investment in the country. Many special incentives introduced by...
S. domestic support for agricultural products and (2) its export guarantee credits for the same type of products. Practically, Brazil questioned the support offered by U.S. To its agricultural producers, the instruments used for this support and all additional programmes and support, such as Production Flexibility Contract payments. Moreover, the latin american country considered that the export guarantee credits offered by U.S. To its agricultural producers were more favourable than
World Trade Organization (WTO) is an international body headquartered in Geneva that promotes world trade and enforces trade laws and regulations. The WTO is the successor organization to the General Agreement on Tariffs and Trade (GATT) , and started functioning on January 1, 1995. It has 146 member countries with 30 more countries having applied for membership. ("WTO in Brief" -- Fact File) While GATT's role was restricted to regulating trade
World Trade Organization (WTO)) can facilitate trading opportunities of your two chosen countries The WTO through the GATT tries to help nations continue trade. This is done through 'The Doha Round' where the latest round of trade negotiations that seeks to redefine the international trading system with lower trade barriers and revised trade rules. It covers about twenty areas of trade. Also called the Doha Development Agenda it is focused on
WTO Final Project The WTO agreements provide for MFN treatment with an intention of multilateralizing as well as liberalizing trade via the enhancement and promotion of service and trade equality between the World Trade Organization (WTO) member states. To be more specific, the MFN principle means that “under the WTO agreements, countries cannot normally discriminate between their trading partners” (WTO, 2019). Thus, as WTO further suggests, no special favors should be
World Trade Organization (WTO). Specifically, it will summarize the mission statement of the WTO, and identify stakeholders and their respective position regarding the organization's future evolution. The charge has been made that the WTO enables multinational corporations to be intrusive to certain segments of societies. Evaluate whether the charge is valid and support your position with relative documentation and reasoning. What is the foreseeable future for the next ten
China and the World Trade Organization On December 11, 2001, China officially became a member of the World Trade Organization (WTO), opening the country's doors to change and a new economy. One year after china's entry into the WTO, the country reported great success, showing better-than-expected economic growth and fulfillment of its WTO commitments, despite the shaky world economy. The excellent performance of the Chinese economy was clearly demonstrated by its 8% growth
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now