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A Layman’s Guide to the WTO
 
Concerns of developing countries
 
What are the main concerns of developing countries about the WTO?
How far have they influenced the WTO to respond to these concerns?
 

What are the main concerns of developing countries about the WTO?

Concerns of developing countries already members or wanting to join the WTO generally revolve around the results of opening up their markets to more developed countries. Will developing countries get enough trade in return for opening their markets? Can they only economically lose to more powerful countries more able to rapidly take advantage of a trade situation? Or will they be overwhelmed by foreign products and companies?

Opening up markets may mean that smaller or traditional economic activities lose out to larger corporations, especially those backed by foreign funding and able to penetrate markets faster than small locally trading businesses.

Thought the WTO agreements are theoretically supposed to ‘level the playing field’, countries that are richer have an advantage that comes from a longer history of international trading. Rich countries have the ability to put more manpower and technical resources into negotiating and can back trade with military power or the withdrawal of aid. A valid fear also is that the more developed countries are economic powers that may back their industrial and agriculture interests with subsidies.

Then there are certain other trade-related moral issues. For example, should the WTO deal with labour standards? Such standards are obviously connected with trade, and workers in developing countries could be suffering because their labour laws, such as those dealing with child labour, are weaker than those of western countries. Yet developing countries may fear that labour standards can be used as a form of protectionism, harming their exporters. However, others point out that the UN’s International Labour Organisation exists to deal with such debates and it is not within the WTO’s remit to tackle such problems. Similar problems exist with environmental standards.

Another area that is troublesome to developing nations is the TRIPS Agreement. The criticism is that it may be impossible for poor nations to develop their own industries independently since richer countries can claim most ideas come from their generic research. A further problem that many NGOs are worried about is that indigenous knowledge can be ‘patented’ by large companies just because they have the money and manpower to take cases to court.

How far have they influenced the WTO to respond to these concerns?

The WTO has always been concerned about development, and from the beginning its aim has been to bring developing countries to the negotiating table. The Doha Development Agenda, decided at the ministerial conference in Doha , is an attempt to meet developing country demands. But as an institution, the WTO can only deal with and respond to the concerns of its member state governments, not bring them up on its own.

The WTO just makes sure that governments of as many countries as possible attend negotiations and agree to a particular set of trading rules. The rules themselves are decided by the governments, not the WTO.
 
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