Rutgers Model United Nations 2 - IDIA
Rutgers Model United Nations 17 nations would benefit the workers and economies of LDCs. This is not the case in reality, however, as the comparative advantage obtained by LDCs is negated by the tariffs and NTBTs. Consequentially, the artificially inflated price of these goods makes them less appealing and competitive on the international market. 53 On the other hand, proponents of trade protection argue that trade liberalization and FTAs force workers of developed nations out of their jobs. They also believe that developing economies benefit from a certain level of protection in the early stages of development, which allows for an established trade network before the economy is opened up to unrestricted global trade. 54 While the idea of trade liberalization has as many supporters as it has critics, the rising world population and alarming levels of poverty accentuate the need for a more efficient global trade network. Substandard Export Quality Concerns over the quality of exported products manufactured or grown in LDCs has long been a justification for developed nations to employ market protection. While quality assurance and product licensing are not major contributors to market protection when compared to cheaper labor, they do nonetheless impact the trade policies of LDCs and their trading partners. In the last decade, genetically modified organisms (GMOs) have infiltrated the agricultural sector of both developed nations and LDCs alike. 55 Simply put, GMOs are crops that are genetically tweaked to produce a larger harvest yield or to be more resistant to diseases than their unmodified counterparts. GMOs are extremely appealing to LDCs as they increase the crop yield and allow for simplified planting and harvesting techniques. However, numerous experts and policy makers fear 53 Brown, Drusilla K., and Alan V. Deardorff. Research Seminar in International Economics. The Effects of Multinational Production on Wages and Working Conditions in Developing Countries. Ann Arbor: School of Public Policy, 2002. Print. 54 Edge, Ken. "Free Trade and Protection: Advantages and Disadvantages of Free Trade." HSC Online. May 2008. Web. 07 Mar. 2012. . 55 Agazzi, Isolda. "Africa: Ban Proposed On Export Restrictions That Undermine Food Security." All Africa. 11 July 2011. Web. 07 Mar. 2012. .
Rutgers Model United Nations 18 that GMOs pose health risks to humans as well as a risk to the unmodified populations of crops globally. One of the major advocates against the use of GMOs is the European Union (EU). The EU currently has a selective ban on thousands of genetically modified (GM) crops and has a safeguard clause that allows any member nation to impose selective bans at the discretion of their respective governments. 56 This is an excellent example of an NTBT as it does not impose a tariff on a certain product, but instead imposes regulations that are almost impossible for LDCs to comply with. Of the eleven per cent increase in GM crop plantings from 2003 to 2004, eighty-four per cent was attributed to LDCs. 57 It is evident that with the increasing prevalence of GMOs in LDCs, the situation for exporters of crops in these nations will only get worse as regulations get stricter. Without a revision of trade regulations regarding crop origin and quality, the LDCs will remain in the less profitable tier of agricultural exporters. Disproportional FTA Application Historically, those nations which opened up their markets to foreign goods tended to advance economically at a much higher rate than those who employed stricter market protectionism. As French economist and avid advocate of free trade Frederic Bastiat stated during the French February Revolution of 1848, "If goods don't cross borders, armies will." 58 While this may be an exaggeration less applicable in the modern world, the concept of trade as a deterrent to international conflict is increasingly relevant in today's society. As a derivative of this concept, some economists argue that the reason market protection still exists is the unequal application of FTAs. For example, when the EU establishes a bilateral FTA with members of the African, Caribbean, and Pacific 56 “EUROPA - Food Safety - Biotechnology - Rules on GMOs in the EU - Ban on GMOs Cultivation." European Commission on Food Safety. Web. 07 Mar. 2012. . 57 Nielsen, Chantal P., and Kim Anderson. "Genetically Modified Foods, Trade, and Developing Countries: Is Golden Rice Special?" AgBioWorld. 2011. Web. 07 Mar. 2012. . 58 “The Ludwig Von Mises Institute." Biography of Frederic Bastiat (1801-1850). Web. 07 Mar. 2012. .