The Wto And Economic Development

Economists offer rigorous quantitative analyses of how the institutional design and purpose of the WTO (and its progenitor, the GATT) affect economic development. The World Trade Organization (WTO) was established partly to support economic development in developing countries through international trade. This goal has been elusive, with some questioning the WTO's ability to achieve such a goal. In this volume, leading scholars in the economics of international trade offer rigorous quantitative analyses of how the institutional design and purpose of the WTO (and its progenitor, the GATT) affect economic development. The volume begins with analyses of market access concessions that have been or could be exchanged between developing and developed countries, from a formal framework for incorporating non-tariff measures into a model for analyzing a multilateral trade agreement to an examination of the MFN (most-favored nation) free rider problem. Contributors then develop new theoretical and econometric approaches for understanding key aspects of trade liberalization under the GATT/WTO that are of particular relevance to economic development, considering such topics as achieving cooperation in eliminating prohibitive trade barriers and the effect of China's export subsidies on its dramatic growth in exports. Finally, the book considers two significant new issues that arose from the Uruguay round, from which the WTO was formed: the TRIPS agreement, regulating intellectual property; and the resolution of trade disputes with and without litigation. Taken together, these analyses shed new light on the relationship between trade liberalization and economic development as well as the WTO's effectiveness.

Publisher's description: Developing countries are increasingly confronted with the need to address trade policy related issues in international agreements, most prominently the World Trade Organization (WTO). New WTO negotiations on a broad range of subjects were launched in November 2001. Determining whether and how international trade agreements can support economic development is a major challenge. Stakeholders in developing countries must be informed on the issues and understand how their interests can be pursued through international cooperation. This handbook offers guidance on the design of trade policy reform, surveys key disciplines and the functioning of the World Trade Organization (WTO), and discusses numerous issues and options that confront developing countries in using international cooperation to improve domestic policy and obtain access to export markets. Many of the issues discussed are also relevant in the context of regional integration agreements. Separate sections of the handbook summarize what constitutes sound trade policy; the major aspects of the WTO from a development perspective; policy issues in the area of merchandise trade and the liberalization of international transactions in services; protection of intellectual property rights and economic development; new regulatory subjects that are emerging in the agenda of trade talks; and enhancing participation of developing countries in the global trading system.

How can international trade agreements promote development and how can rules be designed to benefit poor countries? Can multilateral trade cooperation in the World Trade Organization (WTO) help developing countries create and strengthen institutions and regulatory regimes that will enhance the gains from trade and integration into the global economy? And should this even be done? These are questions that confront policy makers and citizens in both rich and poor countries, and they are the subject of Economic Development and Multilateral Trade Cooperation. This book analyzes how the trading system could be made more supportive of economic development, without eroding the core WTO functions.

At the recent World Trade Organization (WTO) ministerial meeting in Doha, Qatar, WTO members called for the launch of negotiations on disciplines relating to competition based on explicit consensus on modalities to be agreed at the fifth WTO ministerial meeting in 2003. WTO discussions since 1997 have revealed little support for ambitious multilateral action. Proponents of the WTO antitrust disciplines currently propose an agreement that is limited to "core principles"-nondiscrimination, transparency, and provisions banning "hard core" cartels. The authors argue that an agreement along such lines will create compliance costs for developing countries without addressing the anticompetitive behavior of firms located in foreign jurisdictions. To be unambiguously beneficial to low-income countries, any WTO antitrust disciplines should recognize the capacity constraints that prevail in these economies, make illegal collusive business practices by firms with international operations that raise prices in developing country markets, and require competition authorities in high-income countries to take action against firms located in their jurisdictions to defend the interests of affected developing country consumers. More generally, a case is made that traditional liberalization commitments using existing WTO fora will be the most effective means of lowering prices and increasing access to an expanded variety of goods and services.

Publisher's description: Developing countries are increasingly confronted with the need to address trade policy related issues in international agreements, most prominently the World Trade Organization (WTO). New WTO negotiations on a broad range of subjects were launched in November 2001. Determining whether and how international trade agreements can support economic development is a major challenge. Stakeholders in developing countries must be informed on the issues and understand how their interests can be pursued through international cooperation. This handbook offers guidance on the design of trade policy reform, surveys key disciplines and the functioning of the World Trade Organization (WTO), and discusses numerous issues and options that confront developing countries in using international cooperation to improve domestic policy and obtain access to export markets. Many of the issues discussed are also relevant in the context of regional integration agreements. Separate sections of the handbook summarize what constitutes sound trade policy; the major aspects of the WTO from a development perspective; policy issues in the area of merchandise trade and the liberalization of international transactions in services; protection of intellectual property rights and economic development; new regulatory subjects that are emerging in the agenda of trade talks; and enhancing participation of developing countries in the global trading system.

Increased participation in world trade is typically seen as the key to rapid economic growth and development. Since this work examines trade and development from the point of view of developing countries, it provides a rare opportunity to understand - and benefit from - the perspectives of the developing world. Developing nations comprise two-thirds of the membership of the World Trade Organization (WTO) so a work produced by an array of experts from those countries provides an important window on the intersection of trade and development. Since many of the topics covered in the work describe on-going progress in the WTO's "development" or Doha Round, the book also helps readers to understand the context, issues and results of this important round of international trade negotiations.

The World Trade Organization (WTO) has a role to play in strengthening the global trading system for development, primarily by lowering barriers to trade in goods and services and ensuring that trade rules are useful to Developing countries. But greater international cooperation must complement WTO-based negotiations, in particular, concerted action outside the WTO to enhance the trade capacity of poor countries ("aid for trade").

The World Trade Organization—backbone of today's international commercial relations—requires member countries to self-enforce exporters' access to foreign markets. Its dispute settlement system is the crown jewel of the international trading system, but its benefits still fall disproportionately to wealthy nations. Could the system be doing more on behalf of developing countries? In Self-Enforcing Trade, Chad P. Bown explains why the answer is an emphatic "yes." Bown argues that as poor countries look to the benefits promised by globalization as part of their overall development strategy, they increasingly require access to the WTO dispute settlement process to protect their trading interests. Unfortunately, the practical realities of WTO dispute settlement as it currently stands create a number of hurdles that prevent developing countries from enjoying the trading system's full benefits. This book confronts these challenges. Self-Enforcing Trade examines the WTO's "extended litigation process," highlighting the tangle of international economics, law, and politics that participants must master. He identifies the costs that prevent developing countries from disentangling the self-enforcement process and fully using the WTO system as part of their growth strategies. Bown assesses recent efforts to help developing countries overcome those costs, including the role of the Advisory Centre on WTO Law and development focused NGOs. Bown's proposed Institute for Assessing WTO Commitments tackles the largest remaining obstacle currently limiting developing country engagement in the WTO's selfenforcement process—a problematic lack of information, monitoring, and surveillance.