TAILIEUCHUNG - WORLD TRADE ORGANIZATION

It’s really a question of what countries are willing to bargain with each other, of give and take, request and offer. Yes, one of the principles of the WTO system is for countries to lower their trade barriers and to allow trade to flow more freely. After all, countries benefit from the increased trade that results from lower trade barriers. But just how low those barriers should go is something member countries bargain with each other. | World Trade Organization Ị0 common misunderstandings about the WTO Is it a dictatorial tool of the rich and powerful Does it destroy jobs Does it ignore the concerns of health the environment and development Emphatically no. Criticisms of the WTO are often based on fundamental misunderstandings of the way the WTO works. The debate will probably never end. People have different views of the pros and cons of the WTO s multilateral trading system. Indeed one of the most important reasons for having the system is to serve as a forum for countries to thrash out their differences on trade issues. Individuals can participate not directly but through their governments. However it is important for the debate to be based on a proper understanding of how the system works. This booklet attempts to clear up 10 common misunderstandings. The 10 misunderstandings 1. The WTO dictates policy 2. The WTO is for free trade at any cost 3. Commercial interests take priority over development . 4. . and over the environment 5. . and over health and safety 6. The WTO destroys jobs worsens poverty 7. Small countries are powerless in the WTO 8. The WTO is the tool of powerful lobbies 9. Weaker countries are forced to join the WTO 10. The WTO is undemocratic 1 The WTO does NOT tell governments what to do The WTO does not tell governments how to conduct their trade policies. Rather it s a member-driven organization. That means the rules of the WTO system are agreements resulting from negotiations among member governments the rules are ratified by members parliaments and decisions taken in the WTO are virtually all made by consensus among all members. In other words decisions taken in the WTO are negotiated accountable and democratic. The only occasion when a WTO body can have a direct impact on a government s policies is when a dispute is brought to the WTO and if that leads to a ruling by the Dispute Settlement Body which consists of all members . Normally the Dispute Settlement Body makes a .

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