scholarly journals Making Offers They Can’t Refuse: Consensus and Domination in the WTO

2018 ◽  
Vol 5 (2) ◽  
pp. 227-256 ◽  
Author(s):  
Tadhg Ó Laoghaire

Abstract The World Trade Organisation (WTO), and the international trade regime within which it operates, is regularly evaluated in terms of distributive outcomes or opportunities. A less-established concern is the extent to which the institutional structure of the trade regime enables agents to exert control over the economic forces to which they’re subject. This oversight is surprising, as trade negotiations amongst states have profound impacts upon what options remain open to those states and their citizens in regulating their economies. This article contributes to filling this lacuna in the literature. Following on from recent neo-republican work on global and international justice, it argues that a major problem with the WTO is that it fails to effectively mitigate the domination of some states by others within its negotiations. Such domination prevails despite the employment of negative consensus as a decision-making procedure.

2004 ◽  
Vol 56 (1) ◽  
pp. 93-113
Author(s):  
Ivana Popovic-Petrovic

The establishment of the International Trade Organisation was aimed at completing the process of institutionalisation of the international economic relations. The process began at Bretton Woods in 1944 with the establishment of The International Monetary Fund and the International Bank for Reconstruction and Development. This integration entity was planned to become a foundation of the post-war order, and was going to have a broader influence and importance than the economic one. A third pillar of the International Trade Organization has never been established, but that is why the General Agreement on Tariffs and Trade (GATT) came into life. It is one of those agreements, whose nearly fifty-year duration had surpassed even the duration of some states. By carrying out trade negotiations, GATT adopted to new needs. However, the moment its integrity got questioned and such a special idea began to die out, the way was found to preserve the GATT achievements and to have the innovative approach join them. This was done with the establishment of the World Trade Organisation, as an international organisation that manages multilateral agreements in the area of trade (GATT), the trade of services (GATS) and the trade aspects of the intellectual property rights. The institution is of multinational and supranational character. It has its own structure that includes the Ministerial Conferences, the General Council and the Secretariat. The WTO continues a long tradition in GATT of seeking to make decisions not by voting but by consensus, although there are also "circles of decision making" that are gradually narrowing down with the degree of the achieved economic power. The WTO is today a primary concept whose main task is to work on bringing into practice the long-standing idea of free trade. In order to achieve this, it is necessary to abide by the basic principles which the WTO has four of. They are: non-discrimination, reciprocity, market approach and fair competition. If one draws a parallel between a product?s life cycle and GATT?s life, one can understand why GATT itself had reached its peak, but was also gradually surpassed. This is why the establishment of the World Trade Organization was a new opportunity to attain all that that GATT had not managed to attain, and to set new goals for the new century. With the establishment of the WTO, GATT was transformed into an organization, and its scopes were considerably broadened. According to the author, there are several challenges before the WTO. Primarily, the process of solving problems on a multilateral level should be continued. Also facing the still powerful forces fighting for the preservation of protectionism, more pronounced in industrial countries although present in developing ones, should be continued. Even if liberalized non-discriminatory trade and investment policy are achieved, the WTO will maintain its importance as a forum for talks on new areas and issues. Perhaps the biggest challenge in the WTO?s future is to work on further integration of developing countries into the world economic trends. The process of decision making itself is perhaps the best opportunity to show to the developing countries that something has changed, the author concludes.


2008 ◽  
Vol 47 (1) ◽  
pp. 118-120
Author(s):  
Nasir Iqbal

International trade around the world is growing rapidly and it is very effective in improving the living standards of a nation, but still free trade faces many critics. They complain that free trade causes harmful economic adjustments, for example increase in unemployment through the closing of factories etc. The critic further object that the World Trade Organisation serves the interests of international corporations, undercuts domestic environment regulations, and erodes America’s sovereignty. Why has global trade become so controversial? Does free trade deserve its bad reputations? These are the questions which inspired the writer to work against these problems. In “Free Trade under Fire”, the author discusses the misconceptions that litter the debate over trade and gives the reader a clear understanding of the issues involved. The aim of this book is to determine the effect of economic, political and legal factors on the trade policy of the United State.


2019 ◽  
Vol 4 (8) ◽  
pp. 121-125
Author(s):  
Nino Parsadanishvili

resent paper focuses on current crises in international trade in services negotiations from the perspective of consideration of trading interests of developing and least developed countries in line with the operational agenda of the World Trade Organization (WTO). Through the analysis of the existing international legal texts and scholarly works particular attention is paid to the different rounds of trade in services negotiations in parallel to the consideration of the results of relevant ministerial conferences of the World Trade Organization, drawing attention to the situation with regards of consideration of the interests of developing and least developed country members of the WTO. Special focus is paid to the complexity of the decision making process and it’s complication over time due to increased participation of parties concerned in the process of trade in services negotiations resulting in no progress in the overall process. Next to analyzing the challenges faced by the WTO in trade in services negotiations, especially in terms of considering the interests of developing and least developed countries, paper shows the ways that could be used during 2020 Kazakhstan Ministerial Conference of the World Trade Organization for finding solutions to simplify the decision making process and establish freer international trade in services by the way of either implying new approaches in interpreting the existing multilateral treaties that deal with trade in services between all member states of the WTO or deepening the discussions on a new plurilateral agreement helping the organization to overcome the stagnated process of trade in services negotiations and therefore ensuring the compliance with it’s own operational goals.


1998 ◽  
Vol 37 (4II) ◽  
pp. 687-701
Author(s):  
Zafar Mahmood

From its inception the GATT had guided international trade most successfully until the early 1970s. However, afterwards the developed countries (DCs) increasingly recurred to new forms of trade restrictions not covered by the GATT rules. Ironically, these “grey measures” were mostly against the less developed countries (LDCs). These measures constrained international trade exactly at the time when the LDCs started penetrating developed markets. One of the main objectives of the Uruguay Round (UR) accord was to restrict the surge of protectionism. The accord was the most ambitious and detailed trade accord of all the GATT rounds. It established the World Trade Organisation (WTO). Before the UR accord the discrimination in textiles, clothing and agriculture was severe because tariffs and non-tariff barriers (NTBs) were employed in such a way that the overall effect of protection accumulated. The Round had agreed upon the harmonisation and reduction of tariffs, and elimination of NTBs (in stages) and thus it is expected that the effective protection will diminish in the DCs. The new accord has ensured multilateral rules for these sectors. All members expected that protection would be eventually lower with full implementation of the accord. In order to protect the interest of different groups the WTO has now lay down nondiscriminatory trading rules for services and trade-related aspects of intellectual property rights (TRIPs), thus covering all major fields of international trade policy.


2018 ◽  
Vol 26 (2) ◽  
pp. 227-241
Author(s):  
Alex Ansong

The provisions on decision-making in the Marrakesh Agreement Establishing the World Trade Organisation (WTO Agreement) are of fundamental importance in any discussion on democracy in the WTO. Articles IX and X of the WTO Agreement provide for some of the most important decision-making procedures in the WTO. Of particular importance in this regard is the single undertaking principle established in Article II:2 of the WTO Agreement. Under the single undertaking principle all multilateral agreements are binding on all WTO members. This has a significant implication for the democratic legitimacy of decision-making in the WTO because once a decision or agreement is multilateral in nature it is binding on all WTO members. While having the important advantage of bringing rules under the rubric of multilateralism, the single undertaking principle can become overly unwieldy, hence resulting in an impasse-prone decision- making system. This article discusses the single undertaking requirement and decision-making in the WTO and explores the use of paragraphs 1 and 3 of Article X of the WTO Agreement in the adoption of the Trade Facilitation Agreement. It also discusses the special and differential treatment provisions made available to developing and least developed countries based on each country's specific needs.


2001 ◽  
Vol 03 (03) ◽  
pp. 395-412 ◽  
Author(s):  
NORMAN LEE ◽  
COLIN KIRKPATRICK

In the build-up to the World Trade Organisation (WTO) Ministerial Meeting in November 1999, and its aftermath, considerable interest has been expressed in the likely economic, environmental and social effects of trade liberalisation on sustainable development. This article explores the methodological challenges which are faced when undertaking a sustainability impact assessment (SIA) at different stages in multilateral trade negotiations. The article draws upon the authors' experiences when undertaking a preliminary SIA in advance of the proposed WTO New Round, and explores how the methodology used might need to be elaborated for use in later stages of the negotiating process. Given existing methodological deficiencies and data shortages, it points to some of the dangers in being over-ambitious and proposes, as an interim solution, the more detailed and specific application of "simpler" methods already in use.


2018 ◽  
Vol 7 (2) ◽  
pp. 300-333
Author(s):  
Patrícia Nasser de Carvalho

Desde a institucionalização da Organização Mundial do Comércio (OMC), em 1995, ficaram evidentes as suas importantes conquistas na promoção do livre comércio e na gestão das regulações de bases multilaterais do Sistema de Comércio Internacional. No entanto, desde a última rodada (ainda em curso) de negociações da OMC, iniciada em 2001, em Doha, também foram revelados diversos impasses, que provocaram lentidão no avanço de entendimentos, parcos resultados no processo decisório e falta de interesse político dos seus membros. Esses obstáculos deixaram um vácuo no Sistema de Comércio Internacional multilateral, que vem sendo preenchido pelos Acordos preferenciais de comércio (APCs), ou seja, a opção dos países, em sua maioria membros da OMC, por barganhar APCs, neste início de século está intrinsicamente ligada às dificuldades encontradas por eles em concluir acordos satisfatórios nas rodadas de negociações comerciais multilaterais. No início do século XXI, a ampliação do número de APCs se dá a um ritmo de crescimento inigualável em todas as regiões do mundo. A partir de uma discussão pautada na perspectiva da Economia Política Internacional, os objetivos deste trabalho são: a) discutir os principais impasses no Sistema de Comércio Internacional multilateral, tendo em vista as dificuldades enfrentadas pela OMC ao longo das últimas duas décadas; b) a partir da análise dos dados disponíveis, identificar as principais configurações e tendências da proliferação de APCs no mundo, processos que se que intensificam na década de 1990, mas que ganharam mais fôlego no início do século XXI e formam estruturas normativas distintas da OMC.   Abstract: Since the institutionalization of the World Trade Organization (WTO), in 1995, its important achievements in the promotion of free trade and in the management of the regulations of multilateral bases of the International Trade System have been evident. However, since the last round (still in progress) of the WTO negotiations, which had begun in Doha in 2001, a number of deadlocks were also been revealed, which have resulted in slow progress in understandings, lack of results in the decision-making process and lack of political interest of its members. However, a number of deadlocks have also been revealed, which have led to slow progress in understanding, poor results in the decision-making process and lack of political interest of its members. These obstacles have left a vacuum in the multilateral International Trade System, which is being filled by the Preferential Trade Agreements (PTAs). This is the option of countries, mostly of them WTO members, to bargain PTAs, is intrinsically linked to the constraints they encountered in concluding satisfactory agreements in the rounds of multilateral trade negotiations. At the beginning of the 21st century, the expansion of the number of PTAs is at an unequaled growth rate in all regions of the world. From a discussion based on the perspective of International Political Economy, the objectives of this work are: a) to discuss the main deadlocks in the multilateral International Trade System in this century, given the difficulties faced by the WTO over the last two decades; b) from the analysis of the available data, to identify the main configurations and trends of the proliferation of PTAs in the world, processes that have been intensified since the 1990s, but have been a growing trend in the 21st century and taking different normative structures other than the WTO. Keywords: World Trade Organization (WTO); International Trade; Preferential Trade Agreements; International Trade System.     Recebido em: maio/2018 Aprovado em: agosto/2018


1996 ◽  
Vol 155 ◽  
pp. 98-105 ◽  
Author(s):  
Nigel Grimwade

In December, 1993, the round of multilateral trade negotiations known as the Uruguay Round was at last successfully concluded, seven years after it was launched at Punta del Este in Uruguay and three years later than it was scheduled to finish. This was the eighth and, almost certainly, the last round of GATT which is likely to take place on a similar basis. Up until the last minutes, it was uncertain whether any agreement would emerge. The final agreement was formally signed by the contracting parties at a gathering of Heads of State at Marrakech, Morocco and amidst great fanfare in April 1994. On January lst, 1995, the provisions of the Agreement took effect, including the establishment of the World Trade Organisation (WTO) as the successor to the GATT.


2019 ◽  
Vol 23 (1) ◽  
pp. 119-141
Author(s):  
Tom S H Moerenhout

ABSTRACT Energy subsidy and pricing reform is widely heralded as a necessity to transition to sustainable development and keep global warming below 2°C. Energy pricing policies and subsidies are also at the heart of the energy–trade–climate nexus, but progress has been slow within the international trade regime. This is unlike other international organizations or networks, where progress has been more substantial. This article investigates the lack of legitimacy to regulate or coordinate pricing reform and links it to fundamentally divergent interests between fuel producers and importers. The article discusses the regulatory and coordinative potential of the World Trade Organization and preferential trade agreements. It finds that at the World Trade Organization, the Subsidies and Countervailing Measures, the Anti-Dumping Agreement, case law, Ricardian theory, and negotiation history all preempt the consideration of most pricing policies as subsidies. As a result, subsidy notification within the World Trade Organization is low and while other options for improving transparency via the Committee on Trade and Environment and Trade Policy Review Mechanism have been suggested, not much has actually happened because producers protect their comparative advantage. Therefore, support for fuel pricing reform remains on a general level via Ministerial Statements or through general provisions in preferential trade agreements that reconfirm the G-20 and Asia Pacific Economic Cooperation commitments to fuel subsidy reform. The only real advancement has been made within bilateral trade negotiations where heavyweights such as the European Union can push trading partners to abandon dual pricing policies.


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