One can describe the modern world using numerous adjectives. These may include “hectic,” “post-industrial,” “multi-polar,” or “unpredictable,” but “perfect” is the one word that does not fit the description of present-day humanity. In order to modulate unstable interactions between states, political unions, and international businesses, several nations created the Global Agreement on Tariffs and Trade (GATT), which later became the World Trade Organization (WTO), with the aim of regulating international trade while liberating global markets. The organization had proven to be beneficial for big businesses in the countries of the “North” which have now got greater chance to reduce their costs of production through allocating their resources into countries with lower price levels. However, WTO-GATT’s actions have shown to be harmful for local businesses in member-states, for the humanity’s health, and for the environment, which means that organization’s structure needs readjustment.
One of the main problems within the WTO’s structure is its tendency to overlook the importance of environmental laws. Some banned regulations include Endangered Species Act to protect turtles, the “Dolphin Safe” label on tuna cans, U.S. Corporate Average Fuel Efficiency standards, and the 1990 United States’ Clean Air Act. The only exception to WTO’s trend to declare these laws as barriers to trade has been a weakened version of the sea turtles protection law. Product labeling involves voluntary decision by the customer whether to consume ecologically unfriendly products. Although it is important to prevent protectionism among members of the modern international community, the liberalization process should not come at such great a cost as the environment.
Other arguments made by the WTO circumvent food safety regulations. Protecting the health and well-being of humans is an essential reason for creating international organizations including the WTO. The World Trade Organization’s harshness in terms of banning food safety and health protection laws is viewed by some to be a necessary element for a liberal economy, but overlooks human lives. Such cases as a hormone-treated beef ban by the E.U. and the Guatemalan baby-food law illustrate the need for the WTO to adjust its actions.
Raising consumer prices on food has accompanied the long-term trend of falling export prices for agricultural commodities. Although this trend has primarily developed in the United States, it has vast effects in the developing world. Since 1996, the United States has seen a 40% decrease in crop prices, while production costs have risen by nearly the same. In the rest of world, similar effects are noticeable in Mexico. For many years it has been the world’s largest producer of corn. After introducing several laws to open up its economy, Mexico has experienced huge imports of cheap corn. As a result of liberalized economy, the corn production industry in Mexico has collapsed, dragging the rest of the nation’s market down.
Despite multiple disagreements with the World Trade Organization, the world does need WTO to prevent the unpleasant consequences of the absence of open global markets. One unforgettable example of problems that trade barriers can create is the trade barriers wars between the United States and Europe that followed World War I, which led to the Great Depression. In current affairs, the protectionist policy of the Russian Federation, a WTO observer, holds up its automobile industry through creation of elevated tariffs for the imported cars. Russian cars are known for a lack of safety for users as well as the environment. While causing countless deaths on the road and harming the global environment, the Russian government protects jobs for those employed by the automobile factories. In this case, liberalization would clearly benefit the world and the humanity.
