‘It does not matter whether international trade is conducted under a multilateral, or a regional, or a bilateral regime. The outcome is always the same one for developing countries and developed countries.’ Discuss.
br INTERNATIONAL TRADE
The developed nations obviously have an edge over the developing nations in almost all walks of life , including that of international trade . Better infrastructure , better technology better trained and skilled human resource .all these and more contribute to the hegemony that the industrial countries enjoy over the less-developed countries . A series of attempts through treaties and tariffs by the world trading bodies have not been able to balance the scale . This essay will discuss why the gap between the rich [banner_entry_middle]
and poor countries continue to widen under the current international trade regimes , be it regional bilateral or multilateral . The essay will also analyse how the developing countries fare under the current regime and if the treaties they sign under the benevolent WTO help them do better
Multilateral trade regime
The multilateral trade regime – the system operated by the WTO was established to help the member countries liberlise trade . Its aim is to keep the trade flow free and fair . But the obstacles in this path are many . With the stimulus of an open economy , a country can become competitive and give in to the temptation to ward off the challenge of competitive imports . The richer governments are more likely to yield to the siren call of protectionism
The example is followed by many countries , defeating the entire purpose of open trade . But this happens more often than not , with the developing countries coming out the loser The WTO assurance of avoiding such problems needs more working out . Particularly with the collapse of the Doha round of talks , the multilateral trade regime seems to have hit a new roadblock
Page 2 Everyone agrees that multilateral international trade potentially offers many benefits across countries , particularly those that seek to use it as a vehicle for growth . The facts bear this out , yet , trade has also become a contentious issue in the anti-globalisation movement that has grown towards the late 1990s . Social and economic tension due to the expansion of its reach and impact into all countries , developed and developing alike , now prompts a re-evaluation of the process that has increased the breadth and depth of the multilateral trade regime . Developing countries , in particular , need to re-assess their development prospects . There seems to be inadequate attention given to what extent the trade regime has over-all coherence with the development goals of the countries it is intended to benefit , despite repeated policy statements by all member countries in the World Trade Organisation to construct a regime that promotes development
In the day-to-day operations of the WTO , the most pressing concern is the growing friction between the developed and developing country members . The Grand Bargain ‘ between the developed and developing countries in the Uruguay Round identifying the elements of the bargain which developing countries now find unsatisfactory , and the ways in which developing countries have given effect to their dissatisfaction in the WTO decision-making process
A new world economic which understands and supports the needs… [banner_entry_footer]
Author: Essay VaultThis author has published 9453 articles so far. More info about the author is coming soon.