WTO's impotence???? Serious question

[steel108]

I was told to post this in Leg so here goes:

I'm writing a paper on the WTO for my IBUS class and the dispute between the US and Antigua is really f'ing everything up. I can't seem to find a reason why the WTO ruling has absolutely no effect expect that America doesn't give a f. The WTO has never been so powerless before (or so it seems). What are the underlying causes for the ineffectiveness of the WTO ruling?

[Jay Cohen]

American arrogance, particularly from this administration, but both parties are to blame.

[steel108]

Could you elaborate a little: wouldn't sanctions have effects on the US? What has the WTO done that has caused this roadblock?

I have tried searching online, but the info is so iffey. Thanks.

[PLO8FaceKilla]

It all stems back to 1924. The economy was in a recession and other countries were having issues with the farming industry. The united states was the only country at the time that could successfully grow large quantities of potatoes.

At that time, the WTO did not care that the United States didn't want to "share the wealth" as some say with reasonable potato sales to other countries. So basically, the WTO forced the US to sell potatos at 1% above cost to foreign countries that were having problems growing them.
This caused some tension and this is why the US doesn't care about the WTO or it's sanctions.

[Jay Cohen]

[ QUOTE ]
Could you elaborate a little: wouldn't sanctions have effects on the US? What has the WTO done that has caused this roadblock?

I have tried searching online, but the info is so iffey. Thanks.

[/ QUOTE ]

You would think sanctions would affect the US, but sometimes I wonder if the people who make decisions even care. It doesn't change their paycheck week to week, or the fancy job they have lined up when they leave government.

The WTO has not put up any road blocks yet. But it is only as strong as its members. If the rest of the world is going to sit by and let the US remain out of compliance, the WTO is a very weak body. WHile some have commented at a couple of opportunities, we still have not seen complete disgust at the largest member's failure to comply and its unprecedented attempt to withdraw its commitments.

Here is a good read:

http://www.majorwager.com/forums/mess-ha...-henderson.html

Also see www.AntiguaWTO.com.

[catlover]

I wouldn't assume that the sanctions will be toothless. We will see. Probably soon.

[MegaFossil]

[ QUOTE ]
It all stems back to 1924. The economy was in a recession and other countries were having issues with the farming industry. The united states was the only country at the time that could successfully grow large quantities of potatoes.

At that time, the WTO did not care that the United States didn't want to "share the wealth" as some say with reasonable potato sales to other countries. So basically, the WTO forced the US to sell potatos at 1% above cost to foreign countries that were having problems growing them.
This caused some tension and this is why the US doesn't care about the WTO or it's sanctions.

[/ QUOTE ]

The WTO wasn't even established until 1995, and before that GATT was established in 1947.

[Skallagrim]

You have jumped the gun. We are waiting to see what the WTO will order.

It is inherent in the WTO to try and encourage "agreement." That takes time. So does the bureauracracy of any International organization.

But this dispute will ultimately mean a lot. Either the WTO wimps out, and the rest of the world loses faith in the WTO because it has no teeth and wont rile the US. Or the WTO imposes sanctions really significant, in which case even the Bush administration will have to take notice - the US is the prime economic beneficiary of the WTO system, if it falls apart there will be real US repercussions.

We should know by the end of January, is that right Jay?

Skallagrim

[JPFisher55]

Skall is absolutely correct, except that IMO it will be the Dems that take notice and force change if the WTO grants Antiqua its requested IP relief. I wonder if Bush will care about that sanction. The entertainment industry will and it will cause the Dems to take action. In fact, it seems that some of the Democrate leaders in Congress are examining the matter.
I hope that we know before the end of January.

[DeadMoneyDad]

[ QUOTE ]
[ QUOTE ]
It all stems back to 1924. The economy was in a recession and other countries were having issues with the farming industry. The united states was the only country at the time that could successfully grow large quantities of potatoes.

At that time, the WTO did not care that the United States didn't want to "share the wealth" as some say with reasonable potato sales to other countries. So basically, the WTO forced the US to sell potatos at 1% above cost to foreign countries that were having problems growing them.
This caused some tension and this is why the US doesn't care about the WTO or it's sanctions.

[/ QUOTE ]

The WTO wasn't even established until 1995, and before that GATT was established in 1947.

[/ QUOTE ]


Well if he is writing a serious paper about the WTO, it should be safe to assume the OP has more than a passing knowledge of the "WTO"'s history.

Hence neither the OP nor many here need any background history lessons.

The toothlness stems from the basic fact that most of the history of resolution of trade disputes are done by agreement by the disputing countries outside of the "WTO" rubric.

Only recently, ironically at the US's pushing has there been any atepmt to formalize resolution along a tineframe and structure. But too many people worldwide in general, and poker players in particular think the WTO has anything like the history and power of even a US civil court, let alone the real force of a State or Federal court.

You want an example? Try telling a policeman you don't agree with the law, or his ability to enforce it as he or she see it. After you bond out of jail you might get a chance to argue the finer points of your legal distinction but toothless doesn't describe the power of the State to tell you how to act.

So the WTO history of "sucessful" resolution with real sanctions has perhaps as few as a single case for its foundation, unlike in the example perhaps a few centuries of case law.


Just an opinion,


D$D--your milage may vary, opinions are like rear-ends, please fold spindle and mutulate, all winners are chosen at random, decisions of the judges are never final....