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Rutgers Model United Nations 2 - IDIA

Rutgers Model United Nations 2 - IDIA

Rutgers

Rutgers Model United Nations 19 (ACP) nations in order to eliminate all trade barriers by 2025, the United States feels that its trade with the EU may be threatened, and employs market protection against members of the ACP. 59 Similar examples of trade protection as a result of unequal FTA implementation can be seen throughout the world today. While the WTO was designed to encourage FTAs between all member states, it handles these bilateral and multilateral FTAs ineffectively in its current form. According to Rutgers economist Thomas Prusa, the phenomenon of "trade creation-trade diversion" is a major reason for why selective FTAs are ineffective and result in greater market protection than before. 60 The "trade creation-trade diversion" principle states that while FTAs between two or more nations may increase trade in that region, they effectively divert the same amount of trade from a region elsewhere. As a result of this disproportional FTA application, LDCs suffer the most as their economies are usually less equipped to deal with fluctuations in trade patterns. 61 From the LDC's perspective, FTAs are not always a blessing that automatically create more trade, which is why the current WTO policy on bilateral and multilateral FTAs requires the immediate attention of the international community. Projections and Implications If the current trade structure and market protection strategies remain disregarded by the international community, the MDGs of halving world poverty by 2015 will simply be unattainable. Furthermore, the continued implementation of tariffs and NTBTs will contribute to the growing divide between the prospering nations and marginalized LDCs. 62 When faced with issues of GMOs, the WTO is currently lacking the appropriate 59 "EU External Trade Policy "EU Facts: EU External Trade Policy. 26 Nov. 2011. Web. 07 Mar. 2012. . 60 Prusa, Thomas J., and Robert Teh. Protection Reduction and Diversion: PTAs and the Incidence Of Antidumping Disputes. National Bureau of Economic Research, Aug. 2010. Web. 1 Mar. 2012. . 61 Ibid. 62 1 Ben-Ari, Nirit. "Poverty Is Worsening in African LDCs." UN News Center. UN, Sept. 2002. Web. 07 Mar. 2012. .

Rutgers Model United Nations 20 measures to involve LDCs in global trade competitively. The EU along with other governments impose restrictions that disenfranchise the agriculture based economies of LDCs and introduce barriers that are almost impossible to overcome. 63 Despite numerous FTAs introduced among regional and global trade partners, the issue of "trade creationtrade diversion" remains a key deterrent to free trade. Global cooperation and multilateral talks are paramount to the continued trade liberalization in LDCs. Without increased liberalization the LDCs will remain in their current state of widespread poverty and stagnant economic progress. Oxfam International, an NGO whose goals include the sustainable development of trade and infrastructure in LDCs, emphasizes the need for LDC's further integration in the global market. In the Democratic Republic of Congo (DRC), for example, isolation from the rest of the world breeds financial and social insecurity and has resulted in the death of more than five and a half million people since 1998. 64 Protectionist market strategies play a major role in the continued isolation of the DRC, and there is little hope for change with the current global policies. The struggle of the people in the DRC is only one of the countless examples of conflict fueled, in part, by the lack of a coherent and liberal trade network. 63 "WTO-SPS Agreement on GMOs." WTO. Web. 07 Mar. 2012. . 64 "DR Congo: Isolation Breeds Insecurity." Oxfam International. Web. 07 Mar. 2012. .

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