Free trade and the WTO Points covered Principles

Free trade and the WTO Points covered: - Principles of the WTO - WTO in practice Trade and development - Introduction to TRIPS

World Trade Organization (WTO) www. wto. org/english/res_e/webcas_e/ webcas_e. htm Google: “wto webcasting”

WTO Purpose: promote free trade - provide negotiating forum for members - adjudicate conflicts between members -

WTO (a few facts) 1) 2) 3) 4) History: founded 1995 to succeed GATT Membership: voluntary Members: 157 nation-states which account for 95% of world trade. Governance structure: democratic (one-member-one-vote) and multilateral.

WTO Principles (Stiglitz, p. 75) a) b) Most-favoured nation (MFN) principle National treatment principle

WTO in Practice - Dispute settlement - Green room - Long way until goal of free trade is realised

WTO and developing countries How do the trade policies of today’s developed nations during their periods of development compare to the measures recommended to today’s less developed nations?

WTO & development (cont. ) Development in the past (16001970) had little to do with the laissez faire policies which the WTO recommends to developing countries today.

WTO & development (cont. ) ‘Infant industry promotion’ ‘Kicking away the ladder’ (H. J. Chang)

The future GATS TRIPS TRIMS

TRIPS Patents and copyright Why protect intellectual property? What are the consequences? Patents and theft: is there a difference?

Two (mutually exclusive) critiques of WTO 1. Free trade is good; however, WTO rules are not fairly applied. Solution: apply the rules fairly to all.

Critiques (cont. ) 2. Free trade is disadvantageous during a country’s ‘catching up’ period. Solution: prior to catching up, developing countries should be exempt from WTO rules.

International Monetary Fund (IMF) http: //www/imf. org Bretton Woods (1944) 188 member states Non-democratic Conditional loans, e. g. Greece