Globalization

The World Trade Organization

The World Trade Organization was founded in 1995 to replace the General Agreement on Tariffs and Trade (GATT). This multilateral organization aims to lower tariffs and non-tariff barriers to increase international trade. The 146 member states meet in ministerial sessions at least once every two years. NGOs and poor countries fear that further liberalization of trade will only benefit rich countries. WTO negotiations favor the interests of corporate investors and neglect agricultural protectionism and trade subsidies by rich countries. Critics often charge that the WTO functions undemocratically and that it has opaque negotiation procedures that harm the interest of the poor. In the summer of 2006, five years of Doha Round negotiations ended without any agreement, leading many observers to question whether the WTO continues to be relevant in the absence of rich country trade concessions

International Trade Agreements

Neoliberal ideology claims that international trade is an important factor for the development of poor countries and their integration into the global economy. Rich governments' promotion of these ideals has led them to develop an array of new trade agreements such as the FTAA and CAFTA. These bilateral, multilateral, and regional accords strongly affect people at all levels of the economy--from growers and workers, to processors and consumers --by regulating pricing, tariffs, export levels, and methods of production. Though supporters claim that trade agreements bring sustainable development and economic integration, this is not the case. Rich countries maintain protections of their own exports, while their competitors in poor countries agree to open their markets. Beneficial norms, such as human rights or environmental standards, are set aside. This leads to a "race to the bottom," in which