The WTO is a forum that holds countries accountable for their trade commitments. Ideally, participating WTO nations enjoy reduced red tape, lessened corruption and greater reliability for exporters, importers and consumers.
America's goal is to use the WTO as a tool to negotiate the best possible outcomes for U.S. workers, farmers and manufacturers.
Recently, America was an active participant in helping Saudi Arabia to join the WTO, Ukraine and Vietnam to complete bilateral market agreements and Russia to negotiate bilateral market access. Once party to a WTO agreement, the U.S. can appeal to the WTO court of appeal to ensure that participating nations conduct their international trade transactions with integrity.
America's Latest Victories From WTO Dispute Resolution
- Canada co-signed a softwood lumber agreement
- China revoked anti-dumping duties on U.S. kraft linerboard (used to make boxes)
- Canada removed several restrictions on U.S. wheat exports
- Egypt removed discriminatory textile tariffs against the U.S.
- WTO admonished Mexico for its 20% beverage tax made with high-fructose corn syrup
- Mexico removed anti-competitive rules, consequently saving Americans and Mexicans millions of dollars on their telephone bills
- Won WTO case against Mexico's antidumping duties on U.S. rice
- Won WTO case supporting the protection of U.S. food names in Europe
- Won WTO case versus Japan's restrictions on U.S. apples.
Other High-profile U.S. Cases With The WTO Not Yet Resolved
- Largest WTO case ever, a complaint about European Union (EU) subsidies for Airbus
- Joint effort with the EU & Canada against China's discriminatory duties on auto parts
- Filing against Turkey's restrictions on U.S. rice exports
- Filing against Canada's antidumping & countervailing duties on U.S. grain corn.
The WTO derives most of its operating income from member nation contributions. Each member's contribution is calculated with a formula that takes into account that member's share of international trade. As a group, the 149 members contributed about US$150 million to the WTO budget in 2006.
WTO rules and regulations currently govern about 97% of all world trade. In practice, many question the effectiveness of the WTO.
Some critics believe that the WTO disproportionately benefits American multinational corporations including Coca-Cola, McDonalds, Microsoft, Starbucks and WalMart, thus simply making the rich much richer.
Sources: Office of the United States Trade Representatives, Benefits of Trade - July 2006
