Discussion Responses Required

Forum 1: The World Trade Organization

Liberty University Busi 604-B14

Dr. Arthur Mazhambe

Shane Wilson

09/04/2017

Key Term and Why You Are Interested in It

Curiosity is the main reason I wanted to further research the World Trade Organization (WTO). Brian Satterlee stated that the WTO was formed to resolve disputes in international trade and provide international trade standards (2014). While many countries abide by different laws and rules to conduct business within their own countries, they have to come to an agreement when dealing with each other, which I find intriguing. Also, with all of the tension between many countries I would like to see how many of them come to agreements pertaining to trading. Lastly, while working for a major motor company, there are many laws that need to be followed to sell a product to and in other nations. I would like to see how trading of goods between nations relates to producing a product that can be sold in multiple world markets.

Explanation of the Key Term

The World Trade Organization deals with the rules of trading between nations. Richard Baldwin states that “The WTO presides over a rule-based trading system based on norms that are almost universally accepted and respected by its 163 members” (2016). Christopher Balding explains that the WTO has many supporters, but also many critics. Those who support the WTO state that the organization “has freed global trade by lowering tariffs and reducing nontariff barriers, ushering in unprecedented prosperity and growth.” However, those in opposition of the WTO state that the organization focuses on the wealthy countries, and ignores the countries that are less developed (2010).

Major Article Summary

The article “The World Trade Organization at Twenty” written by Roger Porter (2015) discusses the organization 20 years after it began. At the beginning of the article the author discusses the start of the organization. The United States along with a few other nations that were major players in international trade played a large role in the implementation of the WTO. Porter stated that the WTO “advanced three objectives that the United States and its closest allies had explicitly and implicitly championed for many decades.” Porter is referring to free enterprise and free trade, laws ensuring nations are held accountable for their actions and further equality among nations (2015).

Porter later goes on to state in the article that the WTO is very different than it was in 1985. The organization has implemented a dispute settlement system since this time. He stated that the organization has also expanded its membership base to almost every country with significant trade. While there has been significant growth in the organization, there also have been issues. The author states that the organization has not been effective as a negotiating system, and this may be their biggest disappointment. He also mentions that with 160 members having a say in what direction the organization should take is ineffective. There are many members with differing view point than most of the world, and this is a cause of frustration (2015).

Next the author does mention what has been successful about the WTO. Porter states that if it were not for the WTO the world would not be a prosperous as it is today. The organization has also contributed to reducing trade barriers that have been a major issue for some many nations over the past decades. The author closes the article by stating that while there are many benefits to the WTO, there are many issues that need to be addressed and changed (2015).

Discussion

1. The article The World Trade Organization at Twenty relates to the above explanation by explaining the organization as a whole, and discusses the organization’s history and where it is today, 20 years after its inception. While the organization has gone through many changes over the last couple of decades, including a name change (formerly the General Agreement of Tariffs and Trade), the WTO is still the premier organization to ensure international trading is monitored. Much of the first chapter in the textbook has to do with trading between nations, making the WTO a major feature in the first lesson. The World Trade Organization is also a point of controversy for many. There are many pros and cons in the opinion of some. The lessons in the textbook also discuss ethics, social and economic impacts, and cultural diversity. Many of these and other terms were discussed in the article, and the impact the WTO has regarding these terms.

2. The World Trade Organization at Twenty relates to the other articles I researched because the article not only explains the World Trade Organization, but goes into the organization’s history as well as mentions the controversy surrounding the organization. In Richard Baldwin’s article, he mentions the 163 nations that encompass the organization. Porter also discusses the multiple nations involved in depth as well. Christopher Balding goes into further detail regarding the pros and cons of the WTO, which are discussed thoroughly in Porter’s article along with current examples. Another article that has yet to be mentioned is authored by Antonia Eliason (2017), and discusses how the future could be promising for the WTO. This is very relatable to Porters article, as he also discussed the future of the organization, and the potential promising future. Lastly, Tim Josling (2003) wrote an article almost fifteen years ago about his concerns with the WTO. In Porters article he not only discussed the WTO during this time, but mentions the issues they have faced throughout the organization’s history.

References

Balding, C. (2010). Joining the World Trade Organization: What Is the Impact?. Review Of International Economics, 18(1), 193-206. http://ezproxy.liberty.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1093103&site=ehost-live&scope=site

Baldwin, R. (2016). The world trade organization and the future of multilateralism. The Journal of Economic Perspectives, 30(1), 95-116. http://www.jstor.org.ezproxy.liberty.edu/stable/43710012?pq-origsite=summon&seq=1#page_scan_tab_contents

Eliason, A. (2015). The trade facilitation agreement: A new hope for the world trade organization. World Trade Review, 14(4), 643-670.

https://search-proquest-com.ezproxy.liberty.edu/docview/1727611818/abstract/239584C4E76644DBPQ/1?accountid=12085

Josling, T. (2003). Key Issues in the World Trade Organization Negotiations on Agriculture. American Journal of Agricultural Economics, 85(3), 663-667.

http://www.jstor.org.ezproxy.liberty.edu/stable/1244990?pq-origsite=summon&seq=1#page_scan_tab_contents

Porter, R. B. (2015). The world trade organization at twenty. The Brown Journal of World

Affairs, 21(2), 104-116.

http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/1782257933?accountid=12085

Satterlee, B. (2014). Cross border commerce: With biblical worldview applications (2nd ed.). Raleigh, NC: Synergistics, Inc. ISBN: 9781934748121.