In this essay on the World Trade Organisation and the Cancun round of negotiations, there will be a discussion on the advantages as well as the disadvantages of free trade in the global economy and there will also be looked at a defenition for the WTO. Furthermore, this essay will also focus on the reasons why the Cancun ministerial round of discussions had collapsed.
World Trade Organisation.
The World Trade Organisation ( 9 years old ) can be defined as an international body that looks to promote free trade by opening markets through the elimination of import tariffs. It manages trade agreements, observes international trade policy and performs as a medium for trade discussions, while striving for four main goals such as freeing global trade through universally lowered tariffs, imposing the same rules on all members in order to regulate the trade process, urging competition through lowered subsidies and guaranteeing the same trade recognitions for all member nations.
The WTO also gives technical support and training to developing countries and works to improve plainness which concerns trade policies by needing its members to report on their trade laws and measures as they go into effect. (Moore, J. 2003. pg. 1)
Advantages of free trade.
Free trade happens when there are no barriers put in place by governments that limit the flow of supplies and services between trading nations. When these trade barriers, such as tariffs and subsidies are put in place, they protect the domestic producers from international competition and redirect, rather than create trade flows. (Edge, K. 2000. pg. 1)
Trade also ties countries together and this generates a good basis for economic and political interdependence. (Balaam, D.N. & Veseth, M. 2001. pg. 112)
Free trade allows countries to concentrate in the production of those products which they...