The World Trade Organisation

WTO An international organisation that promotes free trade by encouraging countries to abolish tariffs and quotas. An international organisation that promotes free trade by encouraging countries to abolish tariffs and quotas.

What they do 1. Reduce tariffs, quotas and other barriers through negotiation. 1. Reduce tariffs, quotas and other barriers through negotiation.

2. Introduce rules about global trade. 2. Introduce rules about global trade. 50 years ago trade was generally in goods and services, now more and more trade is in intellectual property. 50 years ago trade was generally in goods and services, now more and more trade is in intellectual property.

3. Settle disputes between countries. 3. Settle disputes between countries.

The WTO intervened in a dispute between Brazil and the USA. Brazil claimed that the USA was using protectionism against Brazilian cotton. The WTO intervened in a dispute between Brazil and the USA. Brazil claimed that the USA was using protectionism against Brazilian cotton.

The WTO sided with Brazil in this case: The WTO sided with Brazil in this case:

This could be seen as a success 1. the dispute did no escalate into a full trade war. 1. the dispute did no escalate into a full trade war. 2. the WTO showed that they are able to side against the richest and most powerful country in the world. 2. the WTO showed that they are able to side against the richest and most powerful country in the world.

Settle dispues between countries. In 2007 a small trade dispute broke out between Australia and New Zealand about New Zealand apples. The WTO is hearing from both sides and is resolving the dispute. In 2007 a small trade dispute broke out between Australia and New Zealand about New Zealand apples. The WTO is hearing from both sides and is resolving the dispute.

Just imagine if the WTO didn’t exist. Just imagine if the WTO didn’t exist.

Here are their headquarters…

WTO members

1990s The WTO successfully removed tariffs on electrical goods. The WTO successfully removed tariffs on electrical goods.

2000s The WTO removed all tariffs on garments. The WTO removed all tariffs on garments.

High tariffs remain on agricultural goods. High tariffs remain on agricultural goods.

Would the advantages outweigh the disadvantages if the WTO removed barriers to trade in agriculture? Would the advantages outweigh the disadvantages if the WTO removed barriers to trade in agriculture?

Are the criticisms of the WTO justified?

How successful has the WTO been in its objectives?

2003 December - WTO rules that duties imposed by the US on imported steel are illegal. US President Bush removes the tariffs to avoid a trade war with the EU December - WTO rules that duties imposed by the US on imported steel are illegal. US President Bush removes the tariffs to avoid a trade war with the EU.

2011 August - WTO rules that a tax levied in the Philippines on imports of alcohol breaks global rules on free trade on the grounds that it grants domestic producers who use local cane and palm sugar an unfair advantage. The US has previously urged the Philippines to open its market to foreign alcoholic drinks August - WTO rules that a tax levied in the Philippines on imports of alcohol breaks global rules on free trade on the grounds that it grants domestic producers who use local cane and palm sugar an unfair advantage. The US has previously urged the Philippines to open its market to foreign alcoholic drinks.

WTO What they want CriticismsSuccesses

WTO is too powerful, in that it can in effect compel sovereign states to change laws and regulations by declaring these to be in violation of free trade rules. WTO is too powerful, in that it can in effect compel sovereign states to change laws and regulations by declaring these to be in violation of free trade rules.

WTO is indifferent to the impact of free trade on workers' rights, child labour, the environment and health. WTO is indifferent to the impact of free trade on workers' rights, child labour, the environment and health.