The above post shares a strong insight on the World Trade Organization’s Agreement that is focused to raise the standard of living of individuals in third world countries. This has been related to facilitation of trade and business community in these countries, so that they can overcome their limitations and scarce resources to actively take part in world trade. But is the WTO agreement focused on increasing the quality of living? This is because the standard of living is a relative term that is inclined towards monetary benefits, which can be received in the form of relaxed terms and conditions, subsidies or regional favors on the basis of need. On the other hand, quality of living refers to a different phenomenon, which cannot be ingrained by these small factors but by maximization of prof itability on competitive levels that result in struggle, hard work and quality of products. But the perception of WTO is correct to some extent as standard of living might lead indirectly to quality of living.
Developing countries does not require extra leniency according to special and differential treatment (SDT) but requires extra resources to compete with the international quality and pricing. The developing economies lack energy resources and technological developments and advancements that need to be provided to them, which will resolve this issue from its roots. Extra leniency will only delay the inevitable future of the developing economies, where they cannot even think of competing with first world countries in terms of quality and pricing of products. This is because first world countries are welfare states and they have less expenses as opposed to third world countries. Therefore, WTO should consider taking into account these factors, which are responsible for making them developing economies.
References
Preamble, Agreement Establishing the World Trade Organization
Sheila Page and Peter Kleen ‘Special and Differential Treatment of Developing Countries in the World Trade Organization’ (2005) Global Development Studies EGDI Secretariat, Ministry for Foreign Affairs, Sweden Accessed 26 June 2014 and Keck A and Low P ‘Special and Differential Treatment in the WTO: Why, When and How?’ (2004) Economic Research and Statistics Division, WTO Accessed 29 June 2014
Rose, Andrew K. Do we really know that the WTO increases trade?. No. w9273. National bureau of economic research, 2002.
Bello, Judith Hippler. “The WTO dispute settlement understanding: less is more.” American Journal of International Law (1996): 416-418.
Subramanian, Arvind, and Shang-Jin Wei. “The WTO promotes trade, strongly but unevenly.” Journal of International Economics 72, no. 1 (2007): 151-175.
Rodrik, Dani. “Making room for China in the world economy.” The American Economic Review (2010): 89-93.
Rodrik, Dani. “The globalization paradox: democracy and the future of the world economy.” New York (2011).
Horn, Henrik, Petros C. Mavroidis, and Andre Sapir. “Beyond the WTO? An anatomy of EU and US preferential trade agreements.” The World Economy 33, no. 11 (2010): 1565-1588.
Aslund, Anders. “The world needs a multilateral investment agreement.” Developing economies 2 (2013): 2-500.
Hoekman, Bernard M., and Aaditya Mattoo. “Liberalizing trade in services: lessons from regional and WTO negotiations.” (2013).
Low, Patrick. WTO decision-making for the future. No. ERSD-2011-05. WTO Staff Working Paper, 2011.
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