Why do you think that the GATT rounds and, more recently, WTO negotiations have become longer and more difficult to resolve?

Short Answer

Expert verified
In conclusion, the increased length and difficulty in resolving GATT rounds and WTO negotiations can be attributed to the following factors: (1) the growing complexity of negotiation issues involving intellectual property rights, agricultural subsidies, and trade in services; (2) the rise in the number of participating countries with diverse interests, leading to challenges in reaching mutually acceptable agreements; and (3) the evolving nature of global trade with the emergence of developing countries and the inclusion of non-trade issues like environmental protection, labor standards, and human rights in negotiations. These factors have made achieving consensus on a fair and balanced global trading system more challenging for all involved countries.

Step by step solution

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1. Introduction to GATT and WTO

The General Agreement on Tariffs and Trade (GATT) was formed in 1947 as a multilateral agreement to promote international trade by reducing trade barriers like tariffs. It was replaced by the World Trade Organization (WTO) in 1995. WTO's objective is to regulate and facilitate international trade by ensuring that trade flows smoothly, predictably, and freely.
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2. Complexity of Negotiation Issues

Over time, the scope of trade negotiations has expanded beyond just tariffs and quotas. Issues such as intellectual property rights, agricultural subsidies, and trade in services have become increasingly important in global trade, making the negotiations more complex. With the increasing interdependence of the global economy, the challenges of achieving a consensus on these diverse issues have led to longer and more difficult negotiations.
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3. Increasing Number of Participating Countries

With the expansion of global trade, more countries have become part of the international trading system. The number of countries participating in the GATT and WTO negotiations has increased significantly over the years. In the early years of GATT, there were only 23 countries, whereas there are 164 members in the WTO today. With a larger number of participants, it becomes increasingly challenging to reach a mutually acceptable agreement on various issues.
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4. Conflicting Interests among Nations

Countries often have conflicting objectives and interests in trade negotiations due to their different levels of development, economic structures, and political priorities. For example, some countries may want to protect their agricultural and manufacturing sectors from foreign competition through tariffs and subsidies, while others seek greater market access for their products. The varying levels of economic development and priorities lead to divergent negotiating positions and can create deadlocks in negotiations, prolonging the process.
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5. Evolving Nature of Global Trade

The global trading landscape has evolved with the rise of developing countries like China, India, and Brazil that have become significant players in the global economy. This has challenged the traditional dominance of developed countries in trade negotiations and has resulted in a more balanced and complex negotiating environment. Issues like environmental protection, labor standards, and human rights have also become part of the trade negotiations, adding further complexity to the process.
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6. Conclusion

In conclusion, the longer and more difficult resolution of GATT rounds and WTO negotiations can be attributed to the increased complexity of negotiation issues, the rise in the number of participating countries with diverse interests, and the evolving nature of global trade. As the world economy continues to grow and become more interconnected, ensuring a fair and balanced trading system will remain a challenging task for all countries involved in the negotiations.

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