Free, not fair
Who will referee the referee?
Can we trust the WTO to play fair and square? Or is it controlled by the US, designed in
the West, and custom-built to serve the interests of the 7 richest industrialised
countries of the world (Canada, France, Germany, Italy, Japan, Britain and the US) who
between them control about half the global revenue and two-thirds of world trade? At the moment, the least developed countries of the world
represent 20% of the world's population, but they generate only 0.03% of its trade. Will
the WTO address this global imbalance?
There are a number of problems, as we have seen,
with the way the WTO is run.
Firstly, it is simply not on to demand that all
134 member countries, with their differing levels of wealth, should face exactly the same
trade rules - especially given that the settling of disputes via the WTO involves high
costs which many cant afford. Or, to make it fair, developing countries must be
actively assisted rather than restricted in their efforts to achieve the
same level of development as their richer neighbours. Thats more like it, isnt
it?
Secondly, developing countries being poorer than
industrialised ones, do not have the clout to threaten richer countries with a bash they
might regret (as we saw with poor old Ecuador and the bananas). Trade negotiations are
based on trade offs: America raising sanctions, Europe threatening a ban - a barter system
(we told you trade is nothing new). But if you have nothing to barter, how can you do a
deal?
The irony of course, is that developing countries
have an enormous amount to offer - both in terms of natural resources and manufactured
goods yet they are restricted from offering it! |