Trading Agreements And WTO

Question 1

Key Functions of the World Trade Organisation? (WTO)

Answer 1

• Negotiation
- facilitating trade negotiations among member countries to
reduce trade barriers.

• Dispute Settlement
- resolving trade disputes through a rules-based system

• Monitoring
- monitoring trade policies and practices of member countries to
ensure they comply with WTO rules.

• Technical Assistance
- providing technical assistance to developing countries to
help them participate in global trade.

Question 2

Possible conflict between trading blocs and the WTO?

Answer 2

• Trade Discrimination
- RTAs may discriminate against non-members, potentially violating WTO’s most-favoured-nation principle.

• Trade Diversion
- if RTAs lead to trade diversion, they can be seen as contrary to the WTO’s goal of reducing trade barriers globally.

• Inconsistent Rules
- conflicting rules between RTAs and WTO agreements can create legal and practical challenges.

• Preferential Treatment
- WTO rules generally favour non-discrimination, while RTAs provide preferential treatment to member countries.

• Dispute Resolution
• disputes can arise when WTO and RTA rules conflict, requiring resolution mechanisms to reconcile differences.

Question 3

Challenges faced by the WTO?

Answer 3

• Multilateral Negotiations Gridlock
- there have been numerous disagreements among member countries on various issues such as farm subsidies and special treatment for developing countries.

• Rise of Bilateral and Regional Agreements
- done outside the framework of the WTO. leading to a complex web of overlapping trade rules and regulations.

• Diverging Development Goals
- developing and developed countries have differing priorities and expectations from the WTO.

• Digital Trade and E-Commerce - the rapid growth of digital trade and e-commerce presents
challenges for the WTO, as existing trade rules and agreements may not adequately cover these areas