Rutgers Model United Nations 2 - IDIA
Rutgers Model United Nations 9 The scale of current WTO involvement is unprecedented as it includes 157 member states with all currently recognized LDCs participating in multilateral negotiations in the global arena. Unfortunately for the LDCs, the actions and methods of the WTO evoke strong antipathies. Among other things, the WTO is accused of widening the social gap between rich and poor it claims to be fixing. Martin Khor, the executive director of global think-tank South Centre, argues that the WTO does not manage the global economy impartially, but in its operation has a systematic bias toward rich countries and multinational corporations, harming smaller countries that have less negotiation power. 26 1 December 2009: Treaty of Lisbon Strengthens European Union The Treaty of Lisbon was signed by all of the EU member states in 2007 and came into force on 1 December 2009, effectively finalizing the financial and political structure of the European Union (EU). 27 The EU is an economic and political bloc of twenty-seven member states bound by a single constitution. These member states share a common economic policy of free trade and members of the EU enjoy lowered taxes and reduced NTBTs on trade within the region. Seventeen of the twenty-seven members of the EU, also known as the "Euro zone", use the Euro as the official currency valid in all member states. The creation of the EU led to the establishment of the European Central Bank (ECB), which issues the currency, overlooks the fiscal policy of member states, and services loans given out to both EU states and foreign nations. 28 Following the creation of the EU, the WTO was forced to review its global trade policy as the EU called for various new FTAs both with member states and non-member states. 26 Khor, Martin (2000-01-28). "Rethinking Liberalization And Reforming The WTO". Third World Network. Retrieved 2007-03-22. 27 The Euro outside the Euro Area. European Commission, 5 July 2011. Web. 10 Mar. 2012. . 28 "Economic and Monetary Union (EMU)." ECB: Economic and Monetary Union. European Central Bank. Web. 10 Mar. 2012. .
Rutgers Model United Nations 10 The EU exemplifies the first multi-national effort of both economical and political integration with the unification of currency and elimination of trade barriers. Although the growth in gross domestic product (GDP) was uneven in 2011, it was still greater than the global average of 0.8 per cent, which indicates the advantage of the Eurozone following its unification. 29 Despite the lower tariffs and NTBTs within the EU, the trade protection of some goods remains high for non-members and particularly LDCs. The EU represents a potential model for the unification of other regional trading partners, particularly LDCs on the African continent. 30 Actors and Interests Least Developed Countries Since the Geneva round of the GATT in 1947, LDCs have believed themselves to be at a disadvantage in the global trading community. While LDCs have several geographical, social, and political reasons for their stagnant economic development, it is the disproportionally high tariffs and the use of NTBTs that is hindering their progress the most. 31 The current preference of LDC's policy makers is the immediate and drastic reduction in tariffs imposed by members of the WTO as well as regional FTAs on the goods exported from LDCs. According to the Overseas Development Institute, a London, UK based NGO, the current Doha Round of negotiations within the WTO is crucial to the future of LDCs. As part of the negotiations, LDCs would like to see an increased access to developed nations' markets as well as tariff-free trade on ninety-seven per cent of their exported goods. 32 29 "Europe's Deepening Crisis." The Economist. The Economist Newspaper, 13 Jan. 2012. Web. 10 Mar. 2012. . 30 "European Commission Directorate-General for Trade." European Commission : Trade : Everthing But Arms. Web. 10 Mar. 2012. . 31 Cohen, James. "A Second-best Choice for LDCs." The Economist. The Economist Newspaper, 04 Sept. 2008. Web. 29 Feb. 2012. . 32 Page, Sheila, and Cali Massimiliano. "Development Package at the WTO?" Overseas Development Institute, 17 July 2008. Web. 27 Feb. 2011. .