The neo-liberal economic theory which is the framework of the WTO argues that countries may achieve development through liberalisation (Robert Hunter Wade, 2014), that is based on international specialisation and comparative advantage hence leading to an increase in export earnings, economic growth and development in the long- run, however, the different policies of the WTO’s developed members violates the very principle of these agreements (Donatella Alessandrini, 2010) liberalisation of agriculture and textiles and the regulation of dumping, countervailing duties and safeguard measures are crucial to developing countries’ success in the multilateral trading system, however, these Agreements have locked in an imbalanced set of rules and practices
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For over 50 years, the WTO has successfully encouraged multilateral trade liberalisation and has provided a continuous negotiating forum for this purpose (Kyle Bagwell and Robert W. Staiger, 2005). Bagwell and Staiger (2005) add that, the WTO has achieved multilateral trade liberalization through advocacy for reduced tariffs and trade barriers and multilateralised by the Most Favoured Nation (MFN) rule, which requires that each member offers to every other member access to its markets on non-discriminatory terms (Kyle Bagwell and Robert W. Staiger, 2005). A reduction in import tariffs has increased efficiency by facilitating specialization, investment and technology transfer (Santos-Paulino and Thirlwall, 2004). Trade liberalization has reduced production and transaction related inefficiencies arising from misallocation of resources (Amjadi and Yeats, 1995). It also increases the country’s ability to cope with adverse external shocks and generates strong linkages between export and other sectors of the economy (Soludo, Ogbu, and Chang, 2004). Trade liberalization weakens monopoly elements that may affect trade and improves import and export prices, diversifies exports, reduces reliance on a limited number of primary commodities which are often unstable. With reduced controls on import trade, producers have better access to imported inputs, consumers have a greater variety and better quality products and exporters secure an increased share of the world price of their export products (John Mary Matovu,
For over 50 years, the WTO has successfully encouraged multilateral trade liberalisation and has provided a continuous negotiating forum for this purpose (Kyle Bagwell and Robert W. Staiger, 2005). Bagwell and Staiger (2005) add that, the WTO has achieved multilateral trade liberalization through advocacy for reduced tariffs and trade barriers and multilateralised by the Most Favoured Nation (MFN) rule, which requires that each member offers to every other member access to its markets on non-discriminatory terms (Kyle Bagwell and Robert W. Staiger, 2005). A reduction in import tariffs has increased efficiency by facilitating specialization, investment and technology transfer (Santos-Paulino and Thirlwall, 2004). Trade liberalization has reduced production and transaction related inefficiencies arising from misallocation of resources (Amjadi and Yeats, 1995). It also increases the country’s ability to cope with adverse external shocks and generates strong linkages between export and other sectors of the economy (Soludo, Ogbu, and Chang, 2004). Trade liberalization weakens monopoly elements that may affect trade and improves import and export prices, diversifies exports, reduces reliance on a limited number of primary commodities which are often unstable. With reduced controls on import trade, producers have better access to imported inputs, consumers have a greater variety and better quality products and exporters secure an increased share of the world price of their export products (John Mary Matovu,