Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:

Dispute settlement is the focus of the World Trade Organization (WTO) and the way that the organization keeps the global economy stable.

• What is the WTO, and what is its history?
• What are the benefits of being a member of the WTO?
• What are the disadvantages?
• How does it settle disputes?

Choose a recent dispute between 2 countries, and discuss it with your peers. Include the following:

• Summary of what happened
• How it was resolved
• Role played by the WTO
• Do you agree with the resolution?

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

• What stands out in terms of the various disputes addressed?
• Do you see any ways noted/ hinted at that the WTO could do better or have more support toward its efforts?
• What clarification do you need regarding the posting?
• What differences or similarities do you see between your posting and other classmates’ postings?

Responses:

1- Brittanie Gunn

There are many benefits to be a member of the WTO. Kimberly Amedeo (2019) states: 3“Members of the WTO know what the rules are, and they understand the penalties for breaking the rules—which creates a safer trading arena for everyone.” Being a member of WTO also helps to ensure disputes are dealt with fairly. This also ensures that things are dealt with in a more positive way, not through war. The greatest benefit goes to members from developing companies. By becoming a member, they gain access to more developed nations and more mature industries.

Just like benefits, there are also disadvantages that can be seen to the WTO. Many people feel like the rules do not favor developing countries. The free trade part of WTO may also obstruct the developing countries from diversifying in their growth. Making progress happen can also be slow. Since there are so many rules and regulations to get approved decisions take a long time be made.

The WTO has a very structured way on how they settle disputes. There is an outline that is followed with timelines attached. The first stage is consultation. This can take up to 60 days. This step it to try to avoid a trial. The countries who differ try to work out their difference or can ask for mediation from the director-general of the WTO. The second stage is going to the panel. This can take up to 45 days to gather the panel and up to 6 months for the panel to conclude. These decisions can be appealed but are often hard to overturn because the panel sites agreements in their findings.

A recent dispute at the WTO was Mexico and the United States. Consultation was requested December 17^th, 2008. The dispute was closed on December 15^th, 2015. Mexico wanted to get fight to get its COOL label. The WTO was involved with mediation, and through using articles to come up with a solution. After looking (at the many, many articles) I think it is hard to not agree with their findings. The WTO was very detailed.

References:

Amadeo, K. (2019, October 22). 3 Reasons Why WTO Membership Is So Important. Retrieved from https://www.thebalance.com/wto-membership-benefits-and-importance-3306364.

Pettinger, T. (1970, January 1). Advantages and disadvantages of WTO. Retrieved from https://econ.economicshelp.org/2007/06/advantages-and-disadvantages-of-wto.html.

WTO Members and Observers. (n.d.). Retrieved from https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm#observer.

2- Jennifer Altmiller

The World Trade Organization (“WTO”) is headquartered in Geneva, Switzerland, and is a forum for governments to negotiate trade agreements. The WTO settles trade disputes, operates a system of trade rules, and is a place where member governments try to sort out trade problems they face with one another. The WTO is the only global organization that deals with the rules of trade between nations. The WTO has only been around for a little over 15 years. The General Agreement on Tariffs and Trade (“GATT”) was responsible for promoting free trade practices across the globe, but on January 1, 1995, it was superseded by the WTO.

One of the benefits of being a member of the WTO is that they often make decisions as a group. One of their prime objectives is to endorse trade between member nations and that all they abide by the rules of the trade set out to maintain harmony and peace within these member nations. The WTO also focuses on making business simple, laying out guidelines, and establishes laws and regulations that guarantee all countries comply with the rules. Members have ambassadors or delegates that represent them who meet routinely in Geneva. The WTO has extensive and complex agreements that are difficult for some to understand. To this end, the WTO provides education, communication, and outreach to trading partners and member states.

One of the disadvantages of the WTO is that they lack a focus on developing underdeveloped countries. The WTO tends to be focused on its core founders, like the United States and Great Britain. Developing countries have a disadvantage to the developed nations; poorer countries have been unable to fund delegations to the WTO, which means they cannot effectively bring their issues to the table like the well-developed nations. The WTO consists of Sovereign judges that are the ones responsible for resolving any disputes involving the trade by a process known as dispute settlement. However, this is not always the case. Often the larger well-developed nations dominate the WTO. Even though the WTO has not always had an excellent reputation related to underdeveloped countries, it has granted these countries the legal right not to be discriminated against in its trade with all WTO members.

References:

All Answers Ltd. (November 2018). Advantages and Disadvantages of World Trade Organization. Retrieved from https://www.lawteacher.net/free-law-essays/international-law/advantages-and-disadvantages-of-world-trade-organization-international-law-essay.php?vref=1

What is the WTO? (n.d.). Retrieved September 04, 2020, from https://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm