ubmit at least a 500-word summary of what you learned from group discussions on the U.S. trade policy, U.S. fiscal policy and the U.S. immigration policy.
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group_2_us_trade_policy.docxGroup 2 US Trade Policy
Summary
For our group project we have decided to research, analyze, and formulate an argument on the World Trade Organization (WTO) in regards to the US Trade Policy. In our paper we have discussed what WTO stands for and the goal of this organization. We have also addressed the latest form of trade negotiations among the WTO membership – Doha Development Round and the controversial topics of protectionism and free trade. Among the research we have performed, we as a group have come to a conclusion that we support this organization. Although there are incomplete developments that still need to be addressed, we continue to support this organization because of the fact that numerous nations come together in order to reform these conflicts.
Questions:
1 What makes free trade a better option than protectionism for the economic situation in the US?
Free trade over the years has faced strong criticism within the United States with people arguing that it results in loss of jobs and has a negative impact on small farmers and American families. In my opinion however free trade has been the foundation of the American wealth. America I believe benefits immensely from free trade as it allows the America to become more innovative and develop newer technologies. Further free trade in my opinion has led to economic growth and hence better paying jobs and a better standard of living. Lastly as innovation forms the basis of progress and innovation is driven by competition which in turn is promoted by free trade. (Ana, America and Free trade, 2004)
2. What consequences would the WTO face if they acted unethically given their power?
WTO or the World Trade Organization rules today apply to over 90% of all international trade that happens. The WTO replaced GATT in 1995 and has a much greater level of enforcement powers. With the greater degree of powers that are enjoyed by the WTO a key concern that arose was the resulting shift in power from national governments to an international body which many believe is run by unelected bureaucrats. Further many see the power the body has as undermining of the democracy around the world.
In light of the negativity surrounding WTO powers the body I believe faces serious consequences if it decides to take a path which is seen by majority as being unethical. There are already takes of the body favoring big corporations and undermining the labor and human rights.
The first key threat faced will come from the creation of the so called regional groups which would then lead to regionalization of the global economy. If WTO decisions are seen as being unethical there will be more regional trade agreements such as the EU and NAFTA which can then change the overall dynamics of international trade something WTO aims to protected. In Asia this bilateralism has shown the strongest activity with the creation of ASEAN. Further the actions of the WTO have since long attracted criticism from environmentalist. Unethical behaviors on the part of WTO would I believe give further strength to such groups. (Jurgen, WTO, 2006) (John, WTO, 2007) (International Economics, WTO, n.d)
References
Cavanagh, J. and Anderson, S. (1997). World Trade Organization - FPIF. [online] Foreign Policy In Focus. Available at: http://fpif.org/world_trade_organization/ [Accessed 17 Sep. 2014].
Eiras, A. (2004). Why America Needs to Support Free Trade. [online] The Heritage Foundation. Available at: http://www.heritage.org/research/reports/2004/05/why-america-needs-to-support-free-trade [Accessed 17 Sep. 2014].
Google.com.pk, (2014). [online] Available at: http://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CCkQFjAC&url=http%3A%2F%2Fwww.wto.org%2Fenglish%2Fforums_e%2Fpublic_forum_e%2Frta_presentation.ppt&ei=zFQZVK_LKo2xacz5gaAO&usg=AFQjCNGpV-ZycTuypsrJ2P9weCBsUsezBA&sig2=Y4CzPVGMB4GSD3krRpmPWg [Accessed 17 Sep. 2014].
