United States Blog #5
The World Trade Organization has been home to a lot of controversy in previous years. At its core, the WTO aims to put everyone on an equal playing field when it comes to trading between member countries. For example, countries are not allowed to discriminate against other member countries, and the free trade elements of the WTO have led to lower tariffs. In the case of the United States, the WTO is extremely beneficial, in part due because it was "largely designed by and for the United States." The United States has been able to dodge the rules, as they subsidize their agricultural industries.
Although all countries have equal power, in the real world this doesn't translate because the United States has more power due to the pure size of their economy. The WTO's robust dispute-settlement program prevents member countries from violating agreements on Tariffs, which has proven effective, as evidenced by the United States' average tariff on special exports from China decreasing from 25% to just 7%. Trade Barriers have been lowered, which has allowed trade to thrive for the United States.
The main issue that some have with the World Trade Organization are its limits when implemented into the real world. Critics of the WTO believe it to be a way for larger countries to force developing countries into agreements meant to exploit them. While this shouldn't happen, the power of larger members allows them to "set the WTO agenda."
Furthermore, the WTO is supposed to have transparency, but this has been a point of contention because they have had issues of transparency. It's often unclear who is apart of the agreements and settlements that are made, which adds the to mistrust of the organization. Some see the organization as unnecessary and as misleading. Although it encourages free trade, why aren't all protectionist measures removed, so that true free trade can happen.
While developing countries should be hesitant to join the group, the United States has extreme influence on the WTO, and they have heavily benefited from it. To his own team's surprised, Trump was in favor of leaving the WTO because he felt the US was traded unfairly, despite all evidence pushing back against that. Although there are some issues with the agreement, it has benefited the United States in many ways. The United States has disproportionally benefitted from the WTO's existence, so it is shocking that they would want to leave a group that they helped create.
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