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World Trade Organization - Harvard Model United Nations

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<strong>World</strong> <strong>Trade</strong> <strong>Organization</strong><br />

INTRODUCTION<br />

The <strong>World</strong> <strong>Trade</strong> <strong>Organization</strong> faces numerous traderelated<br />

issues. While many of these issues have been<br />

regarding economic development, more non-traditional<br />

concerns have begun to emerge in the past two decades.<br />

In this session of the WTO, we will discuss two of these<br />

topics.<br />

The first topic is “<strong>Trade</strong> and the Environment.”<br />

Concern of the environment is one of the core elements<br />

of the WTO’s mandate. With the intensity of debate<br />

regarding the environment heating up throughout the<br />

world, trade has come to the center. The impact of<br />

trade on the environment is substantial. Think about<br />

the hundreds of thousands of ships, planes, and trains<br />

that transport goods across the world. Massive amounts<br />

of energy are needed to fuel these machines; with more<br />

energy production comes a greater impact on the<br />

environment. With the entrance of the WTO into the<br />

environmental debate, the number<br />

of issues that need to be addressed<br />

has increased. Some argue that<br />

WTO’s trade regulations have led<br />

to the decline of environmental<br />

health while others claim that trade<br />

liberalization helps promote sustainable development.<br />

But the issue is much more complex. The WTO’s trade<br />

regulations and decisions have the potential of conflicting<br />

with multilateral environmental agreements and have<br />

numerous legal aspects that need to be more carefully<br />

thought out.<br />

The second topic is “Aid for <strong>Trade</strong>.” Liberalization<br />

in trade has not benefited every country. Low-income<br />

and least-developed countries suffer from severe supply<br />

side constraints that result in low export and low<br />

trade capacities. These countries need to develop their<br />

infrastructure and human capital systems so that they<br />

may enter the global value chains. Developing countries<br />

must be able to produce the high quantity and quality<br />

levels demanded by other markets. They must also ensure<br />

that they have the physical capacity to manufacture<br />

goods that conform to various national and international<br />

standards. However, only building up the infrastructural<br />

aspects of the manufacturing sector is not enough.<br />

Developing countries also need a better understanding of<br />

the growing complexities of world trade regulations. The<br />

faster their trade capacity grows, the quicker they must<br />

learn the subtleties of international trade agreements.<br />

“These issues are of upmost<br />

importance to you, members of the<br />

WTO, because trade issues are at<br />

the heart of the organization...”<br />

These issues are of upmost importance to you,<br />

members of the WTO, because trade issues are at the<br />

heart of the organization. The WTO establishes the<br />

institutional and legal framework for the world trade<br />

system, so every decision has wide and far-reaching<br />

implications. Please study these issues well and note any<br />

areas you would like to explore more in detail. The most<br />

effective resolutions will not only include the concepts<br />

introduced in this guide but also more in-depth research<br />

that reflects the nuances of these trade debates.<br />

HISTORY OF THE COMMITTEE<br />

The <strong>World</strong> <strong>Trade</strong> <strong>Organization</strong> is an international<br />

organization dedicated to the liberalization of trade,<br />

a forum for governments to debate and negotiate<br />

trade agreements, and a place where countries come<br />

to resolve their trade disputes. The laws of the <strong>World</strong><br />

<strong>Trade</strong> <strong>Organization</strong> make up the institutional and legal<br />

framework of the international<br />

trading system and supersede almost<br />

all national or regional trade laws.<br />

There are currently 153 member<br />

countries and 31 observers in the<br />

WTO, as well as several international<br />

intergovernmental organizations<br />

like the <strong>World</strong> Bank, International Monetary Fund, the<br />

<strong>World</strong> Health <strong>Organization</strong>, <strong>Organization</strong> of American<br />

States, and the UN food program, which have observer<br />

status as well.<br />

The <strong>World</strong> <strong>Trade</strong> <strong>Organization</strong> traces its roots to 1947<br />

with the signing of the General Agreement on Tariffs and<br />

<strong>Trade</strong> (GATT), the dominant institutional framework for<br />

the international trading system for the second half of the<br />

20th century. The main accomplishment of the GATT<br />

was substantial reduction of tariffs and trade barriers<br />

and the elimination of preferences. Each country was<br />

obligated to grant most favored nation status to all other<br />

contracting parties. This did not mean free trade. What<br />

this meant was that a country cannot give preferential<br />

trade treatments in areas such as tariffs to one member of<br />

the WTO and not to another. Tariffs were still legal but<br />

they had to be relatively similar across countries, with a<br />

few exceptions. The GATT also prohibited quantitative<br />

restrictions on imports and exports and tried to promote<br />

trade in developing countries. Most of these agreements<br />

were solidified during the eight rounds of trade talks that<br />

focused on settling trade disputes and negotiating trade<br />

agreements.<br />

4<br />

Specialized General Assembly Agencies

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