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Role of WTO with respect to controlling export subsidies, improving national welfare and competitiveness of countries

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Question:

After the Seattle 1999 World Trade Organization (WTO) Ministerial Conference, in the next two years, large anti-globalization demonstrations rocked the International Monetary Fund and World Bank in Washington.

Describe the role of WTO with respect to the following 7 aspects: knowledge of WTO/GATT, fostering trade liberalization, abolishing tariffs, increasing transparency, seeking resolutions, improving communication within trading blocs, controlling export subsidies, improving national welfare and competitiveness of developing countries

ANSWER:

Knowledge of WTO/GATT: The key responsibility of WTO is to deal with the global rules of trade to ensure a predictable and smooth trade deliverable. Through the revised General Agreement on Tariffs and Trade (GATT), the rights and discriminatory trading system are spelled out.

Fostering trade liberalization: Through this concept, the non-tariff and tariff barriers are removed in the international context. As the foreign tariffs are eliminated, the International Monetary Fund and World Bank in Washington can be more service competitive to create an enhanced socio-economic performance of the nation (Young, 2017, p912(2)).

Abolishing tariffs: The abolishing of tariffs, subsidies, and quotas can minimize the international trade barriers and anti-globalization demonstration concept. The tariff elimination will promote the refraction of the Country's enhanced GDP and upgraded labor market.

Increasing transparency: Through this element, WTO can offer a trade liberalization effectiveness and trade negotiations strategy. With these subsidiaries and borders, measures can be reduced.

Seeking resolutions: WTO members agreed that the violating the trade rules by the fellow members should use the multilateral systems and abiding the agreed process.

Improving communication within trading blocs: The incredible and polite communication approach with the trade blocs helps the countries to negotiate at the global stage for business internationalization.
Controlling export subsidies: It will approve the incentive for the producers to supply exporting services as opposed to domestic consumption.

Improving national welfare and competitiveness of developing countries: By abolishing the trade barriers, the country's national welfare can be improved in the competitive era.


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