| Many countries around the world are supporting the | | | | countries are the ones that impose environmental |
| notion of free trade and globalisation, which is easy | | | | and labour standards without any action from poor |
| access to goods and services determined by market | | | | countries (Hill, 2004). Moreover, imposing import |
| forces on a global platform with minimal government | | | | restrictions on developing countries will be |
| intervention (Hill, C., 2004). Some benefits of free | | | | self-defeating, as free trade can help to improve |
| trade would include higher consumption of goods and | | | | their standards of living, which will subsequently lead |
| services; better utilization of resources; greater | | | | to proper environmental and labour laws being |
| economic growth and higher creation of wealth (Hill, | | | | enacted in those countries (Hill, 2004). |
| 2004). | | | | At the same time, jobs are not 'stolen' but rather |
| However, there exists strong opposition to | | | | there are greater unskilled workers in the market (Hill, |
| globalisation and to the organizations promoting a | | | | 2004). Hence one solution should be an investment in |
| freer world trade. Such opposition can come in the | | | | education by the respective governments in order to |
| form of certain government intervention. There are | | | | reduce the supply of unskilled workers (Hill, 2004). |
| several reasons for such opposition. First, certain jobs | | | | Advocates of free trade also maintain that free |
| and industries need to be protected from foreign | | | | trade through comparative advantage brings about |
| competition (Hill, 2004). United States gave protection | | | | wealth creation and economic growth, hence allowing |
| to important industries such as automobile, machine | | | | even poorer countries to cope with problems of |
| tools and steel in the form of Voluntary Export | | | | pollution and population growth (Hill, 2004). |
| Restraints (VER) in the 1980s, which protected jobs | | | | With regards to the two points mentioned above, |
| as well (Hill, 2004). However, such a move is not | | | | such opposition to WTO's style of management may |
| justified as the prices of these products turned out | | | | be justified, as the organization needs to be better |
| to be higher than the world prices by reducing | | | | equipped in politics and technical skills to deal with |
| foreign imports, hence diminishing its global | | | | problems facing world trade. However, WTO's stance |
| competitiveness (Hill, 2004). Another related | | | | on freer trade is still justifiable, as this will lead to |
| argument for opposition is the need to protect infant | | | | lower prices to consumers with greater efficiency in |
| industries with appropriate tariffs, import quotas and | | | | resource allocation on a global basis (Hill, 2004). |
| subsidies until they have developed sufficiently to | | | | Third, the WTO has to be more discreet in their |
| compete on the global stage (Hill, 2004). However, | | | | decisions with regards to free trade in agricultural |
| such protectionism usually does not make the | | | | products. Environmentalists have been concerned |
| industry more efficient, with the adverse effect of | | | | with how the lowering of tariffs on imports of lumber |
| making them more complacent. The Brazilian auto | | | | from developing countries will lead to more logs of |
| industry was still highly inefficient after 30 years of | | | | trees being cut from places like Indonesia and |
| protection from the government (Journal of | | | | Myanmar (Hill, 2004). This will lead to greater global |
| Commerce, 1991). Krugman (2001) also mentions that | | | | deforestation (Hill, 2004). At the same time, WTO |
| interventionist policies to promote particular sectors | | | | also has to deal with high protectionism in agricultural |
| of the industry must draw resources away from | | | | products. This is reflected by high tariff rates in |
| other sectors, hence rendering such policies | | | | countries such as U.S. (4.7%) and Japan (4%), |
| inefficient. In fact, advocates of free trade have | | | | coupled with high subsidies, in year 2000 (Hill, 2004). |
| called for an end to all subsidies that promote the | | | | Such high tariffs and subsidies are implemented by |
| wasteful use of natural resources and to introduce | | | | developed countries, which want to protect their |
| pollution taxes, so that current prices can reflect the | | | | industries from competition by low-cost developing |
| risk of global warming (Economist, 2001). Such | | | | nations (Hill, 2004). Such actions are not encouraged |
| arguments for free trade are thus justifiable in this | | | | by developing countries and the WTO, who feel that |
| instance. | | | | such tariffs and subsidies will only lower trade, |
| National security is another reason for opposition to | | | | increase prices to consumers and lead to inefficient |
| globalisation. Industries related to production of | | | | use of resources (Hill, 2004). In this instance, |
| defense products, such as aerospace and | | | | protectionism in agriculture is not justified. |
| semi-conductors, are considered too important and | | | | Globalisation should not ignore the need for |
| dangerous to rely upon from foreign sources (Hill, | | | | protection of intellectual property. Without proper |
| 2004). The U.S. government previously funded and | | | | protections for intellectual property, there will be |
| protected Sematech, which is a consortium in | | | | fewer incentives for greater innovation. The Trade |
| production of semi-conductors, in the mid 1980s | | | | Related Aspects of Intellectual Property Rights |
| (World Investment Report, 2002). However, such an | | | | agreement (TRIPS agreement) has given varying |
| argument proves to be self-defeating, as | | | | grace periods to WTO members on compliance with |
| semi-conductors are subsequently used for personal | | | | patent and copyright regulations (Hill, 2004). WTO will |
| computers and microprocessor chips, and ultimately | | | | have to take extra care with certain countries such |
| resulting in more efficient private funding during 1996 | | | | as China and India, whereby piracy of softwares is |
| (World Investment Report, 2002). | | | | rampant (Hill, 2004). The decrease of piracy will help |
| Protecting consumers is another strong call for | | | | boast economic and social welfare (Hill, 2004). Such |
| opposition to globalisation. At times, government | | | | action on the part of WTO is considered justifiable |
| intervention is required, with regulations in place, in | | | | and should not be opposed by any special interests |
| order to protect consumers from products deemed | | | | groups. |
| to be unsafe (Hill, 2004). U.S. had banned the imports | | | | WTO also came under criticisms for the way they |
| of several arms and weapons in 1998 following the | | | | allow countries to impose anti-dumping policies on |
| rampant killings by individuals using such weapons | | | | foreign imports if they can prove they are "victims" |
| (World Investment Report, 2002). Such an opposition | | | | to excess capacity and cheap prices by low-cost |
| is justified in this instance. | | | | countries (Hill, 2004). Some 2,160 anti-dumping policies |
| Protecting human rights have always been a popular | | | | have been implemented since 2002, with India having |
| call for opposition to globalisation. Countries like China | | | | the largest number of anti-dumping policies (331 |
| and India have bad human rights records, with the | | | | cases) (Hill, 2004). However, some of the |
| usage of child labour and poor working conditions in | | | | anti-dumping actions brought up by the respective |
| rural areas (Hill, 2004). U.S. has wanted to grant the | | | | governments may constitute political rather than |
| Most Favored Nation (MFN) status to China, with | | | | economic well-being, as government officials may be |
| many critics opposing such a move. They claimed | | | | pressurized the need for more votes for future |
| that MFN status should only be awarded when China | | | | elections by huge manufacturers to provide |
| has shown marked signs of improvement in their | | | | protection from foreign imports (Hill, 2004). Such |
| human rights record (Hill, 2004). However, others | | | | irresponsible actions should be abolished by WTO and |
| have argued that the best way to improve the | | | | the organization should keep regulations for |
| human rights stance of a country is probably to | | | | anti-dumping actions in check (Hill, 2004). Meanwhile, |
| engage them through international trade (Hill, 2004). | | | | Bhagwati (2002) also argued that multinational |
| With China's entry to World Trade Organisation | | | | corporations must also be socially responsible with |
| (WTO) in 2001, it remains to be seen if China can | | | | regards to their policies and the environment in |
| show vast improvement in their human rights and | | | | general. The governments must also take active |
| working conditions situation. | | | | steps to enhance the openness and accountability of |
| There are several criticisms of WTO in promoting | | | | their own actions and policy making (McLaren, 2001). |
| freer world trade. First, the WTO is not considered | | | | An example would be the implementation of the spirit |
| politically powerful (Rugman, 2001). All of its previous | | | | of the Arhus Convention in terms of rights to access |
| rounds of tariff cuts have to be screened and | | | | of information, participation and access to justice |
| implemented by the respective sovereign | | | | (McLaren, 2001). Hence in this case, globalisation |
| governments, such as U.S. and Britain. Hence the | | | | instead of protectionism is more justified. |
| WTO has no power on its own to be actively | | | | In summary, there are mixed reviews to the |
| involved in politics (Rugman, 2001). | | | | opposition for globalisation. In the end, the need for |
| Second, WTO lacks technical skills in dealing with | | | | greater liberalization will hugely depends on how the |
| non-trade and labour issues such as environmental | | | | advocates for free trade are able to convince the |
| regulations, labour standards and human rights | | | | anti-globalists that globalisation is often the best way |
| (Rugman, 2001). This may lead to adverse effects on | | | | in providing better labour standards, providing more |
| some of the WTO's rulings on environmental and | | | | jobs in the market and protecting the environment |
| human rights policies. One example is how WTO has | | | | as a whole (Hill, 2004). |
| blocked a U.S. ruling whereby fishing nets are required | | | | Reference List |
| to be fitted with a device that allows endangered | | | | Bangkok Post. (1998) 'WTO Ruling in Turtle |
| sea turtles to escape (Bangkok Post, 1998). This has | | | | Protection Dispute'. March 18, 1998. |
| caused uproar among environmentalists as they | | | | Bhagwati, J. (2002) 'Coping with Gobalisation: A |
| found this ruling necessary to protect these | | | | Trilogy of Discontents'. Foreign Affairs. Vol. 81. |
| endangered species (Bangkok Post, 1998). | | | | February 2002. |
| People who oppose to WTO feel that the | | | | Economist. (2001) 'A Different Manifesto'. Vol. 360. |
| organization is not doing enough to prevent imports | | | | Issue 8241. September 29, 2001. |
| from countries whereby child labour is being abused | | | | Economist. (2003) 'Liberty's Great Advance'. Vol. 367. |
| together with poor working conditions (Hill, 2004). | | | | Issue 8330. June 28, 2003. |
| Globalisation also causes greater pollution to the | | | | Hill, C. (2004) International Business. 5th Ed. McGraw |
| environment (Hill, 2004). Opposition also states that | | | | Hill International. |
| such imports from these countries are 'stealing' jobs | | | | Journal of Commerce. (1991) 'Brazil's Auto Industry |
| from developed countries as well, as such | | | | Struggles to Boast Global Competitiveness'. October |
| manufacturers from rich countries will shift their | | | | 10, 1991. |
| working bases to poorer countries (Hill, 2004). For all | | | | Krugman, P.R. (2001) 'Is Free Trade Passe?'. Economic |
| of the anti-globalists' critics, developing countries have | | | | Perspectives. Vol 1. |
| been crying for more liberalization, with China | | | | McLaren, D. (2001) 'From Seattle to Johannesburg: |
| providing the major spur at the moment (Economist, | | | | Anti-globalisation or Inter-localism?'. Local Environment. |
| 2003). Hence the rich countries are the worried ones, | | | | Vol. 6. No. 4. |
| as the developing countries' growth are said to 'steal' | | | | Rugman, A. (2001) 'The End of Globalisation: Why |
| their markets (Economist, 2003). However advocates | | | | Global Strategy Is A Myth and How to Profit From |
| of free trade and WTO feel that developed | | | | the Realities of Regional Markets'. Amazon. |