The advent of the WTO has benefited the economic growth of developing countries by enabling them to engage in international trade and investment. Do u agree?

Essay by andyjiUniversity, Bachelor's April 2004

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The influence of WTO on developing countries has been long debated in the society; this paper focuses on the question of whether WTO has benefited developing countries in their involvement in international market. Firstly, the general background of WTO is provided, including its history, structure, and purpose. And the second part of the paper deals with different arguments towards the influences of WTO on developing countries. These arguments are concerned with 3 main problems: 1) Whether developing nations losing out in world trade 2) If it is true that developed-country markets are more closed and protected, and whether developing countries are being forced to open up. 3) Whether poor countries are "marginalized" and are lacking of voice in WTO. The paper also acknowledges that inequality does exit, so a new round of negotiation is needed. Finally, it positively reaches the conclusion that WTO has benefited developing countries in their engagement in world trade and investment.

Background of WTO

The History of the WTO

General Agreement on Tariffs was replaced by the World Trade Organization in 1995. The following section is to look back the history of the WTO.

General Agreement on Tariffs (GATT)

As world trade and finance system was destroyed in the World War II, there was a need to build a new system. More and more politicians wanted to solve problems including problems of tariff and trade. Thus, GATT was established in 1947. GATT had four fundamental principles and several agreements. (Palmeter & Mavroidis, 1999)

World Trade Organization (WTO)

The World Trade Organisation was established in 1995, and superseded GATT. According to Dijck & Faber (1996), the WTO provides the all-embracing trade principles to its Members on agricultural products, services, and some major trade-related areas.

In contrast to GATT, WTO is an organization,