Thursday, November 7, 2019
WTO Trade Agreements
WTO Trade Agreements Are WTO trade agreements unjust? With its membership of 163 states and with its ability to affect the process of policy-making in these countries, the World Trade Organisation (WTO) is considered one of the most influential international organisations. The main conceptual premise, which justifies this Organisationââ¬â¢s continual existence, is that the removal of trade barriers on the way of a free flow of goods and services throughout the world does contribute to the facilitation of global prosperity (Walton 2013; Stiglitz Charlton 2005).Advertising We will write a custom essay sample on WTO Trade Agreements specifically for you for only $16.05 $11/page Learn More In its turn, the mentioned assumption helps to establish the Organizationââ¬â¢s legitimacy, as such that has the principle of bilateral beneficence embedded into the very philosophy of its functioning, and to promote the idea that by applying for the membership in the WTO, the developing co untries will be able to revitalize their economies. As Sutherland (2008) noted, ââ¬Å"In an era of broadening and deepening globalization, small or struggling economies thrive only in an environment that generates opportunity and supports entrepreneurship. Much of what the WTO does is, in fact, about helping achieve good or better governanceâ⬠(p. 19). It is understood, of course, that such an idea is hardly consistent with the suggestion what the Organizationââ¬â¢s trade-agreements can be unjust, by definition. Nevertheless, once subjected to an analytical inquiry, these agreements will be indeed exposed utterly inequitable, in the sense that they make it impossible for the developing country-members to become fully developed. In my paper, I will explore the validity of this statement at length while explaining what accounts for the Organizationââ¬â¢s true (and rather unsightly) agenda. Even though the WTO top-officials never cease stressing out the Organisationââ¬â¢ s apolitical and ideologically neutral nature, this is far from being the actual case. The reason for this is apparent the manner, in which the WTO settles trade-disputes between country-members and provides the sets of recommendations, with respect to what should be the essence of economic reforms in these countries, is reflective of the foremost provisions of the ideology of Neoliberalism. They are as follows, ââ¬Å"The state needs to reduce its interventionism in economic and social activitiesâ⬠¦ labour and financial markets should be deregulatedâ⬠¦ Commerce and investments should be stimulated by eliminating borders and barriersâ⬠(Navarro 2006, p. 18). The actual logic behind these discursive assumptions that it is namely the ââ¬Ëinvisible hand of the marketââ¬â¢, which should be made solely responsible for defining the socio-economic dynamics in just about every country on this planet ââ¬â the main key to prosperity. The WTO is there to merely provide an additional momentum to this process (Walton 2010). However, the Organisationââ¬â¢s continual functioning implies that the mentioned ââ¬Ëinvisible market-handââ¬â¢ is not quite as unseen and impartial as the advocates of free-trade would like us to believe, because it does not represent much of a challenge defining the place from where this ââ¬Ëhandââ¬â¢ actually extends ââ¬â the West.Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, there is nothing too surprising about the fact that if anything, the WTO was able to succeed only in one thing ââ¬â enforcing the so-called ââ¬ËMatthew effectââ¬â¢ (the rich get richer and the poor get poorer) on a global scale. This simply could not be otherwise ââ¬â since the time of its founding in 1994, the WTO was conceptualised to serve the purpose of allowing the West to pursue with the policy of neo-colonialism in the Third and Second world countries, without having to invade them militarily. In this respect, Irogbe (2013) came up with the insightful observation, ââ¬Å"The developed, former imperial powers have simply converted themselves into power brokers within the WTO. Mostly they do not have to send troops in to open up a countrys economy for foreign investment and privatization Today, they can simply threaten the country with economic collapseâ⬠(p. 190). The fact that the Organisationââ¬â¢s spokesmen often do express their concern with such issues as ââ¬Ëglobal povertyââ¬â¢ or ââ¬Ëglobal hungerââ¬â¢ is nothing but a publicity stunt, on these peopleââ¬â¢s part the WTOââ¬â¢s very existence contributes to the sheer acuteness of the mentioned issues more than anything else does. This simply could not be otherwise. The concerned Organisation functions as a huge vacuum machine ââ¬â ensuring the steady flow of valuable natural and human reso urces out of the Second and Third world countries to the West, which in turn makes it quite impossible for these nations to be able to get out of poverty. The fact that this is indeed the case can be illustrated, in regard to the following The WTO prescribes its newly joined members (consisting of the underdeveloped countries) to refrain from enacting the policies of economic protectionism. The Organisationââ¬â¢s official explanation for this is that the concerned practice ââ¬Å"ultimately leads to bloated, inefficient producers supplying consumers with outdated, unattractive productsâ⬠(The case for open trade 2016, para. 7). However, the actual rationale behind such an anti-protectionist policy, on the part of the WTO, is much more unsightly ââ¬â the Organisationââ¬â¢s stance, in this respect, is meant to eliminate any chances for the countries ââ¬Ëunderdogsââ¬â¢ to be able to ensure the proper functioning of the industrial sector of their economies. After al l, it has been well proven throughout the history that no country is able to develop an industrial/manufacturing capacity, unless having enacted the policy of economic protectionism throughout the processââ¬â¢s initial phase. The example of the so-called ââ¬ËAsian tigersââ¬â¢ (Singapore, South Korea, and Taiwan) proves the validity of this suggestion perfectly well.Advertising We will write a custom essay sample on WTO Trade Agreements specifically for you for only $16.05 $11/page Learn More Once stripped of the politically-correct rhetoric, the Organisationââ¬â¢s anti-protectionist policy becomes fully explainable ââ¬â while acting on behalf of the ââ¬Ëcollective Westââ¬â¢, the WTO strives to suppress even a hypothetical possibility for the Western-based industries to end up facing too much competition from abroad. As Hart-Landsberg (2006) aptly pointed out, ââ¬Å"The WTO is the vehicle used by the imperial powers to crush the infant industries in the underdeveloped countries in the interests of their MNCsâ⬠(p. 8). To illustrate the full soundness of this idea even further, one can refer to what accounted for the actual consequences of joining the WTO, on the part of such Baltic countries as Lithuania, Latvia, and Estonia. Prior to the development in question, there were many properly functioning industries in these countries, concerned with the production of cars, electronics, and heavy industrial equipment. Moreover, these countries used to be considered the major producers of electrical power in Europe. However, once members of the EU (and consequently WTO), Lithuania, Latvia, and Estonia have been effectively stripped of their industrial capacities, which in turn resulted in the dramatic rise of the unemployment-rate and consequently in bringing about the situation that, as of 2013, 60% of these countriesââ¬â¢ citizens ended up having no choice but to seek seasonal (and often illegal) employment i n Europe (Hansson Randveer 2013). While settling trade-disputes between country-members, the WTO usually takes the side of the most economically developed ones ââ¬â even at the expense of violating the very principle of ââ¬Ëfree tradeââ¬â¢. To exemplify the legitimacy of this suggestion, we can refer to the Organisationââ¬â¢s 1999 decision to order some countries of the EU to stop purchasing bananas from the Caribbean region ââ¬â all because the concerned practice was inconsistent with the interests of the U.S.-based Chiquita Corporation. The way in which the WTO handled the matter shows once again that, contrary to what its representatives proclaim, the Organisation never ceases to be driven by the essentially political considerations while trying to ensure ââ¬Ëeconomic fairnessââ¬â¢ across the world ââ¬â something that implies the actual absence of the latter, in the first place. There are a number of indications that this is indeed the case. For exampl e, the WTO refused to take any action against the U.S., on the account of this countryââ¬â¢s continual attempts to apply much political pressure on European nations to persist with imposing economic sanctions against Russia (another WTO-member). After all, the mentioned activity, on the part of the U.S., stands in striking contradiction to the most basic provisions of the WTO statute ââ¬â yet, the Organisationââ¬â¢s top-officials prefer to turn a blind eye on it. This simply could not be otherwise ââ¬â in order for the WTO bureaucrats to retain their chairs within the Organisation, they must make ââ¬Ëproperââ¬â¢ (that is, Western-friendly) decisions.Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More According to Irogbe (2013), ââ¬Å"The unelected three-panel of bureaucrats as dispute judges (in the WTO), are appointed by the director-generalâ⬠¦ who must have the blessings of the Quads (US, EU, Japan, and Canada)â⬠(p. 177). It is understood, of course, that this undermines the prospect for WTO trade-agreements to be just, by definition. The WTO erects obstacles on the way of the free circulation of scientific knowledge throughout the world by the mean of coercing every country-member to sign the so-called Trade Related Intellectual Property Rights (TRIP) agreement. This is being done to enable the overwhelmingly Western patent-holders to charge high royalties for just about every line of the internationally manufactured hi-tech products (Correa 2000). The mentioned Agreement, however, does not take into account the fact that throughout the course of the last few decades, the seemingly fast pace of scientific progress in the West has been achieved by the mean of ensuri ng the drainage of ââ¬Ëbrain powerââ¬â¢ out of the developing countries in the Westward direction. Moreover, the Agreementââ¬â¢s advocates prefer to remain arrogant as to the fact that just about any type of scientific knowledge cannot be discussed in terms of a ââ¬Ëthing in itselfââ¬â¢ ââ¬â the new scientific discoveries take place because of the earlier achievements in the various fields of science. What it means is that scientific knowledge belongs to the public and not corporate domain ââ¬â something the WTO simply refuses to acknowledge. One of the negative consequences of this is that many people in the Second and Third world are denied the chance to receive a life-saving medical treatment. After all, it is namely due to South Africaââ¬â¢s membership in the WTO that this country is forbidden to produce drugs for alleviating the symptoms of AIDS in patients ââ¬â despite the fact that this country is affected by the concerned disease more than any o ther, and the fact South Africa has a developed pharmaceutical industry. As noted by Curti (2001), ââ¬Å"The WTO unreasonably restricts the trade of pharmaceuticals in order to protect the profit margin of Western drug producers at the expense of infected populations in developing countriesâ⬠(p. 369). This alone raises a certain doubt as to the Organisationââ¬â¢s ability to serve the cause of progress and development. The WTO encourages country-members to eliminate the economically ââ¬Ëunfeasibleââ¬â¢ social programs/services, meant to facilitate the fair distribution of national wealth and to ensure the uninterrupted pace of social progress in these countries. According to Esty (2002), ââ¬Å"The WTO seeks to privatize education, healthcare, energy, and water. Privatization means the selling off public assetsâ⬠¦ to private, often foreign, corporations, to be run for profit instead of the public goodâ⬠(p. 15). Therefore, there is nothing too surprising abou t the fact that the drastic lowering of living standards usually follows the implementation of the ââ¬Ëfree-marketââ¬â¢ reforms, recommended by the WTO. One does not have to go far to prove the validity of this idea, because the illustrating examples are all around us. Probably the most convincing of them has to do with the ââ¬Ëprogressââ¬â¢ made by Ukraine, in the aftermath of having joined the WTO. It is not only that Ukraineââ¬â¢s ââ¬Ësmart moveââ¬â¢, in this respect, resulted in the countryââ¬â¢s complete deindustrialisation, but also in the fact that, as of today, Ukraineââ¬â¢s systems of healthcare and education have de facto ceased to exist (Yurchenko 2012). According to the WTO, such a situation makes perfectly good sense. Why should the Ukrainian government invest in healthcare and education, if no short-term profit can be gained from it? As seen by the WTO bureaucrats, the countryââ¬â¢s population is too large and ââ¬Ëuselessââ¬â¢, as it is. Therefore, it will only be logical to expect that, for as long as the Ukrainian government continues to cooperate with the WTO, the likelihood for this country to disappear from the world map in the near future (due to depopulation) will remain thoroughly realistic. After all, such a development would be thoroughly consistent with yet another officially proclaimed goal of the WTO ââ¬â to enable the unrestricted repositioning of ââ¬Ëworkforceââ¬â¢ throughout the world (Armstrong 2012). In light of what has been mentioned earlier, WTO trade-agreements do seem utterly unjust ââ¬â at least when assessed from the point of view of the developing (or underdeveloped) countries. The reason for this is quite apparent ââ¬â the Organisationââ¬â¢s approach to facilitating free trade exposes the agenda of Western countries to conserve the current situation with the ââ¬Ëdivision of labourââ¬â¢ on this planet. On one hand, there are the ââ¬Ëprivilegedââ¬â¢ WTO members (Western countries), allowed enact a number of the clearly protectionist policies (such as providing farmers with heavy subsidies). On the other, however, there are the Organisationââ¬â¢s ââ¬Ëunderdogsââ¬â¢ (such as the earlier mentioned Lithuania, Latvia, Estonia, and Ukraine), which are forbidden to even think of doing the same ââ¬â all because their membership in the WTO assigns them with the informal status of Western colonies, at least in the economic sense of this word. It is true, of course, that due to being concerned with the removal of trade barriers across the world, the Organisation allows the most expedient accumulation of wealth on a global scale. This, however, does not necessarily mean that all the affiliated contributors are entitled to a fair share of it. Quite to the contrary ââ¬â the WTO is there to help the West to maintain its neo-colonial grip on the developing countries, which is detrimental to the interests of the latter. It is under stood, of course, that this hardly contributes towards helping the Organisationââ¬â¢s policies to be perceived thoroughly fair by the underprivileged majority of its members. As Kapstein (1999) noted, ââ¬Å"(Economic) institutions that discriminate against some players or fail to provide equal opportunity to the least advantaged cannot be considered just, though of course they might be efficientâ⬠(p. 533). However, there is even more to the issue ââ¬â the fact that most of WTO trade-agreements are blatantly unjust, does not merely indicate the Organisationââ¬â¢s commitment to strengthening the Western economic dominance on this planet. Apparently, it is also something that exposes the conceptual erroneousness of the Neoliberal assumption that free (unregulated) trade is the key to richness. Yet, this specific idea defines the essence of the Organisationââ¬â¢s operant principles. After all, before they are made available in their segment of the market, the commerc ial goods and services must come into existence first, which in turn presupposes the (planned) creation of the objective preconditions such an eventual development to take place. And, it is specifically the enactment of the interventionist/protectionist economic policies by the government that has proven the only effective contributing factor, in this respect ââ¬â especially in the case of those countries that have only recently been put on the path of industrialisation. Moreover, the WTOââ¬â¢s implicit insistence that peopleââ¬â¢s consumerist instincts alone define the quality of social dynamics in just about any country simply does not stand any ground, especially if assessed systemically. Even many supporters of Neoliberalism, such as James (2005), do recognise this fact, ââ¬Å"Markets generally have large-scale effects that cannot be brought about by particular acts of buying or selling, or by the sole efforts of any particular economic agentâ⬠(p. 539). The reas on for this is that the mentioned dynamics never cease to remain highly societal (systemically complex) ââ¬â even if appear to be solely affected by the supposedly unregulated fluctuations of supply and demand in the ââ¬Ëfreeââ¬â¢ market. What this means is that, even if the WTOââ¬â¢s actual agenda was indeed concerned with helping the underdeveloped countries to become economically competitive, the Organisation would still not be able to progress far pursuing it. The reason for this is that, due to being ideologically driven (Neoliberlaism is as much of an oppressive ideology as Communism); the WTO is very reluctant to allow impartial scientific knowledge to have any effect on the quintessence of its currently deployed approaches for eliminating trade-barriers/settling trade-disputes between nations. This, in turn, removes even a hypothetical possibility for WTO trade-agreements to be just ââ¬â even if it does appear to be the case on the outside. I believe that th e used line of argumentation, in defence of the idea that WTO trade-agreements are unfair, is consistent with the initially provided thesis. Therefore, it will only be logical to conclude this paper by suggesting that the very existence of the WTO confirms that the workings of the world economy are politically/ideologically charged and that the West continues to benefit from being able to exploit the ââ¬Ëglobal peripheryââ¬â¢, under the disguise of helping the associated countries to attain ââ¬Ëeconomic efficiencyââ¬â¢. References Armstrong, C 2012, Global distributive justice, Cambridge University Press, Cambridge. Correa, C 2000, Intellectual property rights, the WTO and developing countries: the TRIPS agreement and policy options, Zed Books, London and New York. Curti, A 2001, ââ¬ËThe WTO dispute settlement understanding: an unlikely weapon in the fight against AIDSââ¬â¢, American Journal of Law and Medicine, vol. 27, no. 4, pp. 469-485. Esty, D 2002, ââ¬ËThe World Trade Organizations legitimacy crisisââ¬â¢, World Trade Review, vol. 1, no. 1, pp. 7-22. Hansson, A Randveer, M 2013, Economic adjustment in the Baltic countries, Working Papers of Eesti Pank, vol. 1, pp. 3-21. Hart-Landsberg, M 2006, ââ¬ËNeoliberalism: myths and realityââ¬â¢, Monthly Review, vol. 57, no. 11, pp. 1-17. Irogbe, K 2013, ââ¬ËGlobalization and the World Trade Organization from the perspective of the underdeveloped world, The Journal of Social, Political, and Economic Studies, vol. 38, no. 2, pp. 174-202. James, A 2005, ââ¬ËDistributive justice without sovereign rule: the case of tradeââ¬â¢, Social Theory and Practice, vol. 31, no. 4, pp. 533-559. Kapstein, E 1999, ââ¬ËDistributing the gains: justice and international tradeââ¬â¢, Journal of International Affairs, vol. 52, no. 2, pp. 533-555. Navarro, V 2006, ââ¬ËThe worldwide class struggleââ¬â¢, Monthly Review, vol. 58, no. 4, pp. 18-33. Stiglitz, J Charlton, A 2005, Fair trade for all: how trade can promote development, Oxford University Press, Oxford. Sutherland, P 2008, Transforming nations, Foreign Affairs, vol. 87, no. 2, pp. 125-136. The case for open trade 2016, https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact3_e.htm. Walton, A 2010, ââ¬ËWhat is fair trade?ââ¬â¢, Third World Quarterly, vol. 31, no. 3, pp. 431-447. Walton, A 2013, The common arguments for fair trade, Political Studies, vol. 61, no. 3, pp. 691-706. Yurchenko, Y 2012, ââ¬Ëâ⬠Black holesâ⬠in the political economy of Ukraine: the neoliberalization of Europeââ¬â¢s ââ¬Å"wild eastâ⬠ââ¬â¢, Debatte: Review of Contemporary German Affairs, vol. 20, no. 2/3, pp. 125-149.
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