"At the just-concluded WTO meeting in Argentina, India and a group of developing countries blocked an initiative that would have ushered in a 20-year moratorium on levying duties on electronic transmissions – especialy from Spotify, Netflix, Amazon, Google. In response, a number of developed economies, including the EU, UK and the US, served notice that they would work towards a deal, outside the WTO, among themselves to aenhance 'the export of digital services without costly customs duties'. Is this good for internaional trade and the survival of WTO?
Dear John,
That´s a very important and interesting question.
I believe that both initiatives are good, but the results (good or bad for the international trade) will depend on results of the deal being closed. This is probably going to be a tough negotiation and hard to be closed with all members happy.
Nevertheless, it needs to happen, in my opinion.
Best wishes.
A. Hess
So, here we are another proof that richer and stronger can more. Unfortunately in the international relations it seem to became standard. The EU has become the experimental plot of this unwritten rule. Please, take a look for example on debate on Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services. Relation on it between for example France, Germany and Middle-East Europe looks like the same (or even mostly similar) mechanism. WTO has already repeatedly protected the interests of strong players in the global market.
Please, take a look for example on TRIP - Trade Related to Intellectual Property
TRIPs protect owners of approved copyrights and patents, enabling them to earn the right profits in all member countries.
Generally, "liberalization" promoted under the WTO with a strong focus on ensuring adequate benefits for the industrialized countries and transnational corporations operating in these countries.
The rules followed by the WTO begin to operate when international corporations face barriers from local and national laws and competition. Unequal treatment inscribed in the functioning of these rules, especially in trade between North and South is most visible, if we look at the very hard and intricate regulations and procedures in force in this institution.