The WTO is a global organization where the current 162 member-countries strive a

Question

The WTO is a global organization where the current 162 member-countries strive at defining global trade rules. The last round of negotiations, the Doha Round, started in 2001 but collapsed in 2008 as result of ongoing disagreement between the developed and developing countries on agriculture subsidies for the former and access to industrial markets for the latter. It is only in 2013 that the WTO delivered on a new multilateral agreement known as the Trade Facilitation Agreement. In 2015, the WTO members agreed to eliminate export subsidies on agricultural products, and a group of them aimed at expanding the Information Technology Agreement.

Following these breakthroughs, the business community has found itself newly engaged in the organization efforts to address trade rules beyond the current proliferation of bilateral and regional trade agreements. Please use this forum to discuss the opportunities and challenges that business leaders face when trading globally.

Do include comments related to trade rules, dispute settlement mechanism, regional trade agreements, types of regional trade agreements (free trade, custom unions, common market, economic union) with specific examples including ongoing trade deals/negotiations.

Explanation / Answer

There are many challenges and opportunities that businesses and entrepneurs face when trading internationally.

Opportunity

1. They get new and expanded market to sell their products.

2. They can find a foreign markets for their products for which there is no domestic market.

3. They can get raw materials and inputs from other countries, if not avilable domestically.

Challenges

1. The industries which are not compettive enough are hit hard by the cheap imported goods.

2. Many jobs are lost due to international trade.

Overall trade creates new opportunities for everyone, but soetimes poor farmers are hit hard. Also, in some countries, farmers prefer to sell their trade in international market in order to get higher revenues without even meeting the domestic needs.

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