2.4.4.3 World trade organisation (WTO) and concerns of developing countries

The World Trade Organization (WTO) is an international organization that deals with the global rules of trade between nations. It was established on January 1, 1995, to replace the General Agreement on Tariffs and Trade (GATT) and expand its scope to cover various aspects of international trade beyond just tariffs. The WTO aims to promote free and fair trade, facilitate negotiations, and resolve trade disputes among its member countries.

While the WTO plays a crucial role in promoting international trade and economic cooperation, there are several concerns and challenges that developing countries have expressed regarding its functioning and impact on their economies. Some of the main concerns of developing countries regarding the WTO are:

1. Imbalance in Negotiating Power: Developing countries often feel that they have less negotiating power compared to developed countries, especially during trade negotiations. Developed countries, with their economic influence and resources, can often push for trade agreements that may not be in the best interest of developing countries.
2. Agricultural Subsidies: Developing countries have raised concerns about the agricultural subsidies provided by developed countries to their farmers. These subsidies can distort international agricultural markets, making it difficult for farmers in developing countries to compete on a level playing field.
3. Market Access: Developing countries seek better market access for their products in developed countries. However, barriers such as high tariffs, non-tariff barriers, and stringent sanitary and phytosanitary measures often hinder their access to developed country markets.
4. Special and Differential Treatment: Developing countries have called for special and differential treatment in WTO agreements to acknowledge their development needs and capacity constraints. They argue that certain provisions should consider their unique situations and grant them more flexible treatment.
5. Trade in Services: Concerns have been raised by developing countries regarding the liberalization of trade in services, as they fear that it may negatively impact their domestic service sectors, which may be less developed and competitive.
6. Intellectual Property Rights (IPR): The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the WTO has been a concern for some developing countries. They argue that strict enforcement of IPR can limit access to essential medicines and technology transfer.
7. Technical Barriers to Trade: Developing countries face challenges complying with technical regulations and standards set by developed countries. Meeting these requirements can be costly and burdensome for their exporters.
8. Dispute Settlement Mechanism: Some developing countries feel that the WTO dispute settlement mechanism is biased in favor of developed countries, leading to difficulties in having their trade concerns adequately addressed.
9. Implementation of Agreements: Developing countries may face challenges in implementing the commitments made under various WTO agreements, either due to limited capacity or financial constraints.