WTO Assignment
One common critique of the WTO is that it overturns national environment protections and forces countries to lower standards. Research and find at least one example where the WTO has done this. What are the implications to the country, to the rest of the member states, and international trade when the WTO overturns such national environment protections?
The WTO is the main forum that sets rules for global trade. In more than a decade, it has helped in lowering the existing barriers to international trade and helped in dispute resolution. However, the WTO faces criticism over some environmental aspects that it overturns to protect and promote international business.
Some of the economists criticize the WTO since it does not put enough efforts to impose more robust environmental stands on the underdeveloped countries. Another criticism of WTO is that it does not give the members room to act in any way without interference. The WTO sometimes imposes the economic policies which are unwanted to the nations hence interfering with their sovereignty
An example where the WTO overturned national environment protections and forced a country to lower standards is in the year 1998 when the United States tried to protect the sea turtles that were endangered. The WTO ruled that the United States was attempting to violate the rules of international trade by setting standards that were likely to infringe the trade activities because they were discriminative. Another example is the US Tuna dolphin issue, where the United States was found to impose the dolphin-safe label that was established to protect the dolphins in the fishing sector. This activity was also infringing on the WTO rules because it was also discriminatory (WEIMER, 2017). In this case, the WTO is seen to favor international trade over environmental protection. Doing this shows an activity which implies that countries have the right to raise standards but must do so while acting according to the WTO rules and regulations.
The implication to the United States
The implication to the United States is that the ability of the WTO to intervene in the sea turtles and the Tuna dolphin tells the country of what is acceptable and not acceptable to avoid infringing the openness of trade. Additionally, this activity implies that the United States under the WTO does not have the right to conduct trade affairs without involving the organization. It also means that the WTO is determined to protect international trade at any cost by removing national uncertainties that might impact trade
The United States, as a member of the WTO, is supposed to exercise transparency and also raise standards that are acceptable to support the global business. The WTO has the power to make the United States accountable even if it is a powerful country.
Implications to the Member States
To arrive at a decision that is likely to interfere with trade. The member countries are supposed to make decisions in a consensus manner. This means that decisions are made as a whole and not based on individual states. Member states are supposed to follow the procedures of the WTO in implementing any standards that deal with the national environment protection
Countries are not supposed to impose environmental standards that are likely to create shut down to international trade. The WTO is focused on ensuring that a state does not set environmental standards that are likely to affect other nations’ trading activities.
Implications to International Trade
The WTO is focused on maintaining global trade by removing the environmental standards which are likely to reduce trade and other countries’ competitiveness. Some of the environmental protection barriers restrict and affect business by causing uncertainties. The WTO ensures that it removes the trade uncertainties, which might be caused by other countries’ activities.
The WTO overturns the national environment protection to support international trade. The WTO is highly focused on trade maintenance and reducing uncertainty. The action of the WTO to reverse the national environmental protection shows the support of the organization towards trade. This activity and function of the WTO will ensure there is no global economic crisis which might be caused by the events of one nation. The reduction of the global crisis will encourage openness and facilitate a smooth flow of activities in international trade.
The WTO is determined to formulate rules and guidelines that support the operation of international business (Gerber, 2018). Through performing overturns to national environmental protection, the organization can offer a fair trade platform that allows its member states to engage in trading activities in a manner that is fair and peaceful. Additionally, the WTO is focused on promoting trade through persuading member states to abolish activities which might inhibit trade or create unfair competition to other countries. Such actions of the organ enable it to enhance business and remove uncertainties which might affect or inhibit trade activities in the global market
The WTO sets global rules that provide other member countries with assurance to trade. The ability of the WTO to overturn the national environment protection of the United States sends a clear picture of the organization’s determination to create assurance in international trade. Besides, the WTO encourages members to put in place the standards and policies that conform to their rules and regulations. This is an activity that helps in the creation of a prosperous and economic world that is accountable.
In conclusion, even though the WTO is criticized for having overturned the national environment protection and force countries to lower standards, it uses this as a tool to promote trade and lower trade barriers. This is an activity that helps the organization to boost global trade
References
Gerber, J. (2018). Internarional Economics (7 ed.). United States: Pearson Education Limited.
WEIMER, M. (2017). Reconciling Regulatory Space with External Accountability through WTO Adjudication – Trade, Environment and Development. Leiden Journal of International Law; , 30 (4), 901-924. https://search.proquest.com/docview/1961738459?accountid=151051