Multilevel Rule of Law Challenges in Global Trade

This assignment provides an in-depth analysis of multilevel rule of law challenges in the context of global trade. It draws from a range of academic sources, including journal articles and book chapters, to explore themes such as the interpretation of Art. XX (d) of GATT 1994 in WTO case law, the relationship between quality and productivity in China's accession to the WTO, and the impact of natural disasters on agricultural protection. The assignment also touches on broader issues like neo-colonialism and its effects on development in Africa, as well as class dynamics in South Africa. It presents a nuanced examination of international trade policy and its implications for global governance.

POLICY ISSUE IN
GLOBAL
ECONOMY

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
1. Description on identification of opportunities available for WTO for enhancing and
extending its powers. ..................................................................................................................1
2. Explanation on the potential threats which can negatively affects the general function of
WTO............................................................................................................................................2
3. Define the first best policy of the country concerned with the purpose of restricting the
externalities involved in trade process. .....................................................................................3
4. Arguments in favour of trade interventions. ..........................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The WTO stands for world trade organisation. The main function of this organisation is
to deal with the negotiations and enforcement of negotiated multilateral trade rules. This is
helpful in order to have identification of relationship between the various environmental
measures and trade measures to promote sustainable development. The present file has covered
the various aspects in relation to global issues. Moreover, this assignment has covered with the
things like opportunities available for enhancing its power, function of WTO, potential threats,
trade interventions and many other thing in order to create the sustainable developmental. The
main aim is to facilitate the implementation in order to deal with the multilateral trade
agreements. The main object is to improve the welfare of the peoples of the member countries.
Main body
1. Description on identification of opportunities available for WTO for enhancing and extending
its powers.
The WTO deals with the functioning of business as rules of trade between nations at
global level. This is the kind of organization for liberalizing the trend. It is the forum for
government to negotiate the trade agreement in the effective mode. The agreements under the
WTO are wide and complex because it is covered with the wide range of activities. They deal
with the various kind of business function such are as agriculture, textile and clothing, product
safety, food sanitation and various other kind of the things which is helpful in order to run the
operation of business effectively. This organization has been the grip of resolving the systematic
crises since 2008. The continuously increment in the number of emerging markets in the world
trade investment are working as titling the balance of global power in the systematic manner. In
this there are differed visions in which are rules are to be continuously modified and updated in
order to enhance the modern trade and investment policies. There are various kinds of challenges
in relation to the western architects of the WTO.
The power of WTO as follows-
1. The decision in the WTO are made by the entire membership in order to deal with the
decision in WTO. They are working in order to make the various laws and legislations so
that they can able to run their policies in the global level.
2. Instead, GATT was considered as the established ad hoc provision organisation which
was approved by the parliament of the countries.
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3. The WTO work as to framing of the rules and policies of the various enterprise so that
they are able to provide satisfactory services and resolve the issue in the primary stage.
4. The WTO has the additional power as compare to the GATT as they are act as the
settlement of dispute between the trade markets.
5. This organisation is very helpful in order to establishing the huge contribution to the
peace, prosperity and rules of law in order to settled out the trade relations.
6. These organisations are taking various kind of initiative in order to settled out the trade
dispute by avoiding the wars in the differed nations. They are working as to work on the
basis of the non- discrimination principles.
7. With the help of reduction in the equalities they are able to have equal contribution in the
process of decision making.
The contribution of WTO to internation trade-
1. Trade without discrimination- It does not allow discrimination among its members. In
addition to this, The WTO members have equal chance of trading with the each other. In
order to trade without discrimination principles requires the membership in the WTO.
2. Free trader- In this the WTO maintain the lower amount of barriers in relation to
encourage trade system. The international trade is engaged with the help of ensuring the
all members about the fair trade on the basis of various rules and rules and regulations.
3. Promoting fair competition- This organisation is following the principle like trade
without discrimination. With the help of promoting fair trade between the differed
nations they are able to performing the work effectively manner.
4. Encouraging development and economic reform- This is positively correlated with the
developed countries. In order to have effective function in the trade activities of the
different nations there is need to encourage the development so that major issue in
relation to trade can be work effectively.
2. Explanation on the potential threats which can negatively affects the general function of WTO.
This is large organization working as to make rules for trade so that each enterprise can
work effectively. The major issue in this is related to the inadequate challenge and cost of
implementation of developing countries. Due to the reduction in the tariffs the foreign products
made with the use of cheaper technology which can work as to flood the market. The present
market is based on the high technology due to this the firm is operating its business function in
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the large manner. The one of the major cause is that the increasing forces of the globalisation has
dramatically affected the working of the business in the large manner. Due to real threat to the
investment the decision making process is stepped in the real threat. This organisation is very
helpful in order to establishing the huge contribution to the peace, prosperity and rules of law in
order to settled out the trade relations (Orbie, Van den Putte and Martens, 2018). These
organisations are taking various kind of initiative in order to settled out the trade dispute by
avoiding the wars in the differed nations. They are working as to work on the basis of the non-
discrimination principles. The WTO is working as the addition mechanism for the having the
transparency and resolving the disputes with the differed nations. There is need to put the major
factors modernize the economies. In order to deal with the functioning of the WTO there is need
to manage the working of the enterprise in the large manner.
3. Define the first best policy of the country concerned with the purpose of restricting the
externalities involved in trade process.
The monopoly terms is related to the single seller in the market. This refer to the
economic competition for production of the particular goods which are having the large
substitute in the market. This is the kind of labour market in which there is the one firm to buy
the product and services. This is the kind of situation is occurs at the time when labour power is
imperfect. There is the process of immobility of labour on the both manner in occupational and
geographical. There are various other forces which are working in relation to preventing labour
force in order to migrate the other areas (Brophy, 2018). In this manner there are various kinds of
the labour exploitation in relation to reduce or remove labour exploitation in the market. This is
defined in the following manner as follows-
1. By having increment in the mobility of labour, in this all the things are need to be done in
order to provide job information with the help of other places through the government
and private agencies.
2. With the help of the fixation of the minimum wage rate for the various workers they are
monopolistically exploited.
3. By collective bargaining the union is taking various kind of initiative in order to deal with
the higher amount of the wage rate for all the workers.
4. Under the monopolistic exploitation the labour force cannot be removed by the trade
union actions as there are monopoly or imperfect competition produced in the market.
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There are various kinds of measures which are need to be taken in order to remove the
imperfection and monopoly condition in the market (Falconnier and et.al., 2018). With
the help of various kidn of the taxation and legislative measures the labour exploitation
can be reduced at the some level of extent.
5. With the help of the collective bargaining scheme the union need to take the variosu
initiative in order to deal with the marginal rate of the labour under the perfect
competition.
There are various kinds of problem in relation to the Monopsony exploitation in the labour
market define in the following manner as follows-
1. The amount of wages is lower in the market.
2. There us increment in the wage rate.
3. The workers are performing there activities in order to improved the working conditions.
4. The reduction in the labour productivity can largely affect the working conditions of the
firm.
5. Lack of motivation to the labour force can reduce the labour productivity.
There are various kinds of sources in the monopsony power as follows-
1. Government employer- In this the legal authorities in relation to set the wages like profit
maximisation etc. the legal authorities need to framed out those legislations with the help
of which they can perform their business function effectively (Klomp and Hoogezand,
2018).
2. Unemployment- At the time when unemployment is on the high level than willing to
accept the lower amount of wage rate.
3. Lack of information- In the theory of competitive labour force the workers assumes that
there are differed rate of wages in order to compete with the potential sources of
employment.
4. Geographical immobility- at this the discrimination can be made of the basis of wage rate
system between the labour force.
5. Shift patterns- the firm need to provide the fixable working condition to their employees
so that they all can perform their business function in the effective and efficient manner.
The other facilities like the rest room, crèches for the children will be helpful under the
shift pattern of working.
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6. Difficulties in moving job- The worker can lose his job on the job training method. the
some employees are having habits to change their job in order to get the high amount of
wage rate.
4. Arguments in favour of trade interventions.
Trade intervention- The WTO is working with the principle of fair act between the
various trade in which they need to work effectively. Trade intervention is referred to be a
governmental intervention in the process of trading which is with a special context of
international trade. This involves several arguments that are presented strategically defines non-
economic causes specified with reference to the intervention of government in the international
trade of a nation. These are as referred below-
1. National security argument- This is with a special concern of every country whose
government is intended to guard some of their industries to further protect their national
security. This is for instance to specify about aerospace, semiconductors, weapons,
advanced electronics and strategic minerals, etc. However, defending only for the sake of
producing accessible particular resources seems not to be an ideal policy (Lawrie and
et.al.,2018). Thereby exists an alternative approach for the same where the government
can instead consider storing the resources while harmony, when they are inexpensive
(Langan, 2018). Here, in some protagonists in favour of national security have argued
that a country should be enough self-reliant with a prepared outlook to pay for any
inefficiency.
2. Foreign policy goals argument- This is for a successful achievement of the international
policy goals with a foremost involvement of commerce in it. Herein, a preferential
treatment is seen to be given to certain nations with which, other countries attempts to
create a strong bonding. This is for instance on considering a similar example of Pakistan
getting rewarded for providing airbase to US at the time of Afghan war and so on
(Martin, 2018).
3. Strategic trade policy argument- this statement argues that the industry is having the
economies of the scale in this manner they will support the very less firms. In this the
government should use various subsidise in relation to support the various firms. It is also
helpful in relation to domestic firms to overcome the barriers so that there can be moire
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amount of the barriers in relation to government market. The government should take
initiative in order to pay subsidies to support this kind of firms so that each activities can
be run in the market in the effective manner. It is helpful for the domestic firm in order to
deal with this kind of the issues in the market.
4. Safety argument- This statement is argues that the government need to take various kind
of initiative in order to deal to protect the customers from unsafe products. The developed
countries are very tough in order to quality of the product when agriculture commodities
comes from the developing country (Fan and Yeaple, 2018). The safety in relation to the
labour force is one of the key arguments and it is need to be maintain in order to generate
the functioning of the organisation in the effective manner.
5. Emotional argument- the each organisation need to work as per the preserving the
cultural identities and heritage so that business function can be carried out in the effective
manner. The environmental issues play the major role in relation to the imposition of
trade restriction ion the market (Andersen, 2018). The country need to take various kind
of initiatives in order to deal with the internation trade in the market. The international
trading activities will work in order to lead the outflow of wealth from local people to the
foreigners. In this case the local will not get any values in the return.
CONCLUSION
Based on the above report it has been concluded that WTO stands for world trade
organization. This assignment has analyzed that WTO is the huge force in order to facilitate the
trade among its member countries. The main function of this organization is to deal with the
negotiations and enforcement of negotiated multilateral trade rules. This is helpful in order to
have identification of relationship between the various environmental measures and trade
measures to promote sustainable development. The main aim is to facilitate the implementation
in order to deal with the multilateral trade agreements. The main object is to improve the welfare
of the peoples of the member countries. The continuously increment in the number of emerging
markets in the world trade investment are working as titling the balance of global power in the
systematic manner.
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REFERENCES
Journals & Book
Andersen, H., 2018. India–Solar Cells and Mexico–Taxes on Soft Drinks: Multilevel Rule of
Law Challenges in the Interpretation of Art. XX (d) of GATT 1994 in WTO Case
Law. Indian Journal of International Economic Law.
Fan, H., Li, Y.A. and Yeaple, S.R., 2018. On the relationship between quality and productivity:
Evidence from China's accession to the WTO. Journal of International Economics. 110.
pp.28-49.
Martin, M., 2018. The power-based influence within a rule-based system through “extended”
interpretation in US-Shrimp: Is all lost for the WTO DSU. Journal of International Trade
Law and Regulation.
Lindsay, C.O., 2018. Small states and policy space in global trade politics: an examination of
how small upper-middle to high-income developing countries respond to policy space
constraints at the WTO (Doctoral dissertation).
Reich, U.P., 2018. Accounting for international trade in value added: a comment on the OECD–
WTO project. Economic Systems Research.
Langan, M., 2018. Neo-Colonialism and Donor Interventions: Western Aid Mechanisms. In Neo-
Colonialism and the Poverty of'Development'in Africa (pp. 61-88). Palgrave Macmillan,
Cham.
Langan, M., 2018. Neo-Colonialism and Nkrumah: Recovering a Critical Concept. In Neo-
Colonialism and the Poverty of'Development'in Africa (pp. 1-32). Palgrave Macmillan,
Cham.
Klomp, J. and Hoogezand, B., 2018. Natural disasters and agricultural protection: A panel data
analysis. World Development. 104. pp.404-417.
Falconnier, G.N., Descheemaeker, K., Traore, B., Bayoko, A. and Giller, K.E., 2018.
Agricultural intensification and policy interventions: exploring plausible futures for
smallholder farmers in Southern Mali. Land Use Policy. 7O. pp.623-634.
Claar, S., 2018. International Trade Policy and Class Dynamics in South Africa.
Brophy, S.D., 2018. Reciprocity as dispossession: a dialectical materialist analysis of the fur
trade. Settler Colonial Studies,
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Lawrie, T.A and et.al.,2018. Interventions to reduce acute and late adverse gastrointestinal
effects of pelvic radiotherapy for primary pelvic cancers. The Cochrane Library.
Kanyane, M., 2018. Disaggregated Development: Between ‘Trade, Industrialisation and
Migration’. In Crisis, Identity and Migration in Post-Colonial Southern Africa-. Springer,
Cham.
Orbie, J., Van den Putte, L. and Martens, D., 2018. Civil society meetings in EU free trade
agreements: the purposes unravelled. In Labour Standards in International Economic
Law. Springer, Cham.
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