The Importance Of The World Trade Organization

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The 1900’s were known as a time of advancements, whether it was the automobile or the beginnings of modern day electronics, as the technology industries grew, the world became smaller. Globalization was looked at as a good thing by some, and problematic by others; however, none of those critics could predict the massive change in policy that would ensue. One major industry was greatly affected due to globalization; this industry was trade. Many different agreements were put into place as a response to globalization. What started out as GATT, transformed quickly into the WTO, World Trade Organization. The purpose of the WTO was to effectively police the policies put in place by GATT in order to combat the new abuse by the many trade industries, caused by globalization. Many nations formed their own trade treaties with each other in an attempt to protect their own interests, interests that the WTO failed to guard. The World Trade Organization’s inability to respond to new international trade barriers caused many members to form separate regional and bilateral agreements in order to protect and regulate free trade.
When the WTO was formed, the world seemed simple, democracy ruled over all
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The WTO actually benefits many governments in more ways than one. As one of the services it provides, the WTO acts as a mediator to help settle grievances between nations with their own trade treaties. Daniel Ikenson writes, “[NAFTA] continue[s] to rely on the WTO to help resolve disputes, even though NAFTA has its own dispute-settlement mechanism” (Beary 781). Also the WTO provides important regulations for highly controversial areas such as dumping and government subsidies. The World Trade Organization has proven to do more harm than good over the past 20 years in regards to trade

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