Economy Assignment Example | Topics and Well Written Essays - 5000 words

Economy - Assignment Example The organization was established in 1944 and in early 1995, it replaced the General Agreement on Tariffs and Trade (GATT), becoming the main organization fuelling the process of trade negotiations. The Secretariat of the WTO is present in Geneva and more than 140 countries are members of the organization, constituting for about 97% of the trade all over the world. 30 other countries have a negotiating membership in WTO. The main role of WTO is to mitigate the barriers that are present to global trade as well as to make the process of trade on the international level more transparent and predictable. Moreover the WTO functions to regulate and enforce the laws that are formulated by the organization to maintain transparency in trade and to regulate the exchange of goods that take place under the category of imports and exports of both goods and services. The laws that are passed by the WTO can be amended through trade negotiations to promote the genuine interests of the members. It can be argued that amendments to trade negotiations have an impact on the economy of the country in the same way as trade policies themselves do. The aim of this paper is to delve in greater detail regarding the basics of economic analysis and how is it used in trade negotiations. Moreover the paper explores the probable economic benefits that may culminate due to the success of the trade negotiations. The paper discusses how economics can be used for the purpose of identification of current failure of Beneficiaries to come to an agreement regarding trade negotiations. Analysing the WTO in this context, one comes to appreciate that the organization serves two prime functions (Bruch & Environmental Law Institute 2002). Firstly, the WTO has a policymaking role. This follows that WTO provides a platform for nations to come unite and discuss various aspects of trade between them. Countries are called together for the purpose of negotiating multilateral trade agreements. In this regard, the WTO also has the authority to review the trade policies of the member countries. Secondly, the WTO serves a dispute settlement role. The WTO provides yet another platform for countries to come to a solution regarding their disputes which surface as a result of the trade agreements between the countries. The policymaking role of the Organization is primarily member-driven; on the other hand, the dispute settlement position gives the duty of resolving disputes to independent ad hoc panels (Bruch & Environmental Law Institute 2002). One aspect that the Organization has to deal with respect to trade is trade negotiations. Negotiations are wrought with dilemmas and disagreements amongst the participating nations and it is not easy to reach a consensus regarding many of the issues under discussion. When participating in a summit, nations would tend to get their version of the amendment put into effect, subserving their own national priorities. Therefore, one can establish that the proces s of trade negotiations on such a vast scale is never a win-win situation. The process of trade negotiations between countries has an impact on the rules and regulations that WTO drafts and enforces. The process of trade negotiations and the subsequent changes that are made to the trade agreeme