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World Trade Organization
|1.||What is the WTO?|
|2.||Benefits of the WTO|
Is The WTO undemocratic?
Last critical point is that the WTO neglects democracy. The choices available to democratically controlled governments are significantly shrink by its rules. "Under WTO rules, once a commitment has been made to liberalize a sector of trade, it is difficult to reverse," the WTO says.
Many non-governmental organizations, such as the World Federalist Movement, demanding the creation of a WTO parliamentary assembly so there will be a possibility for more democratic participation in WTO decision making.28
The lack of transparency can be seen as a problem for democracy, because all the decisions are maid behind closed doors and politicians can negotiate for regulations that would not be possible accepted in a democratic process in their own nations.
But the WTO is stating that it is not undemocratic, because decisions in the WTO are generally made by consensus, since no decision is taken until everyone agrees. But of course not every country has the same bargaining power. Nevertheless, the consensus rule means every country has a voice and every country has to be convinced before it joins a consensus, i.e. accepts the decisions.29
Trade liberalization is a graduate process which must be planned, phased in and based on clear rules. Meanwhile increased trade capacity and domestic pro-poor policies should support trade liberalization. Nevertheless global trade development formed by the developing world can only take place in the WTO.30
Without true international competition the industries of the countries, which use the WTO as protection, will become more inefficient. Theoretically, a lack of competition takes away the need to invest in new technology, to control costs and continually improve production because the domestic company will adjust their price to the tariff-set price of foreign goods. In the meantime, the international competitors will improve their products to come over the barriers and could emerge as the stronger companies. Consumers may buy their products because of better quality and they might be willing to pay a premium over domestic goods.31
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