Impact of World Trade Organisation on Global Trade

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Bachelor of Business in Supply Chain & Transport Management
(FT & ACCS) – Award (NFQ Level 7) Academic Year -2018-2019
MGMT7050 Global Trade & Customs Law 17972
What is the World Trade Organisation (WTO) and what impact does
it have on world trade?
Module Lecturer: Gerry Greenway
Student: Karol Makarewicz

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Table of Content
Cover Page.........................................................(1)
Table of Content.................................................(2)
Introduction........................................................(3)
Protectionism and Trade Liberalization.................(3-4)
Tariff and Non-Tariff barriers................................(4)
WTO Agreements................................................(5)
Benefits and challenges.......................................(6)
Conclusion.........................................................(7)
Bibliography.....................................................(8-9)

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Introduction
WTO currently have 168 members representing 98% of the whole world established
in 1995 by Uruguay round negotiations (1986-94). The World Trade Organization is
an international organization containing forums between governments for negotiation
of trade agreements. WTO is aiming to reduce trade barriers and also the
organization is supporting customers and protect spreading of diseases. WTO is
about to support importers and exporters and support producers of goods in nations.
The main purpose of WTO is to obtain the lowest possible barriers (wto.org 2019).
WTO is run by its member governments and the most important decisions are made
by the body as a whole via attendance of meetings in Geneva 1-2 times a year. Main
points of WTO are to be more open, more completive, protecting the environment,
more benefits for less developed countries, predictable and transparent and Non-
discrimination system. In this report I will be mainly discussing about WTO
emergence, impact on its members and future. Also, I will analyse protectionism and
trade liberalization the barriers and tariffs agreements benefit and challenges which
organization is facing and will mention the Brexit issue and possible consequences
based on WTO agreement and on the end of this assignment I will have my
conclusion on all material.
Discussion:
Protectionism and Trade Liberalization
Protectionism on the market is about to protecting own industries, own markets from
outside countries by raising tax or implementing charges against other countries to
make products more expensive and less competitive compered to local products
Also, there are quotas to reduce the volume of goods to enter market or
standardization which might build entry barrier for other markets where standards
are different. Accorded to the Corporate Finance Institute. (2019). Protectionism has
advantages and disadvantages like reducing imports to balance trade and to give a
boost to the local and national market which can also increase job vacancies and
finally increase the national GDP. Protectionism might also have a negative effect on
cultural exchange, innovation, price increase and quality of services and not always
can influence positive economy as expected, where in 1929 protectionism had
catastrophic impact on US economy (Smoot-Hawley Tariff Act 1930) causing
significant decrease in trade on global market and increasing the great depression in
United States. The WTO is aiming to reduce barriers and to improve products flow
according to Roberto Azevedo WTO CEO, Protectionism have bad influence for
global trade warning Donald Trump President of the United States as Donald Trump
is seen as a protectionism influencer.
Trade Liberalization is simply the opposite way as compared to liberalization and is
aiming to reduce trade barriers, quotas and increase competition in markets to