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World Trade Organisation and their relationship to developing countries - an evaluation

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World Trade Organisation and their relationship to developing countries - an evaluation This paper will analyse, and were appropriate, criticise the relationship between the World Trade Organisation (thereafter abbr. WTO) and the developing countries as well as discovering the current situation. The question arises how the WTO acts opposite to the developing countries and whether it is equal to how they proceed with industrial countries? In order to answer this issues at first a general overview about the WTO will be given and furthermore an evaluation of the position of the developing countries within the WTO. The WTO entered into force on 1 January 1995. It exists to ensure that trade between nations flows as "smoothly, predictably and freely as possible".1 To achieve this, the WTO provides and regulates the legal framework which governs world trade. The legal documents of the WTO spell out this framework as well as the individual obligations of the member countries. ...read more.


This will hopefully alter the trade relationships and include much further the developing countries. The multilateral liberalisation commitments, in particular the enclosure of the agricultural, textile, and clothing trade into the WTO agreement will strengthen the world trade position of the developing countries on a long-term basis and give them new chances to export driven growth.5 At present the WTO tries to promote the economic development of the third world countries. Therefore it is permitted within the developing countries to take special measures for the improvement of their trade possibilities which deviate from the general clauses of the agreement. The aim is that by a more efficient execution of the development programs the economy will be strengthened and the general standard of living will be improved.6 Moreover these granted preferences are not subject of the most-favoured nation treatment principle, as the developing countries are not in the position, due to a low tariff standard, to submit their partners interesting counter offers. ...read more.


This was justified with the necessity for an efficient conduct of the negotiations.9 Another further large problem results from the insufficient financial and personnel resources of the developing countries within the WTO. Many developing countries can only afford a small diplomatic representation in Geneva. This is in the light of the multiplicity of the residential international organisations not an adequate representation which ensures equitable cooperation in the WTO. Therefore it can be said, that attempts are made to encourage and involve the developing countries and the policies seem to be reasonable. But this should happen with a more human face.10 Nevertheless it is important to stay critical and there has to be consistently observation. Word Count: 975 Word Count all parts: 4451 1 Cambridge University Press, available on www.uk.cambridge.org [Accessed on 15.11.04 ] 2 August, 2004, p. 365 3 WTO: Understanding the WTO, 2003, p.112 4 Senti, 2000, p. 257 5 ibid., p. 684 6 Y�ksel, 2001, p.231 et seqq 7 Y�ksel, 2001, p.33 8 August, 2004, p. 361 9 Wahl, 2000, p.14 et seqq 10 Stiglitz, 2002, p.247 16 ...read more.

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