Reflective Analysis : The World Trade Organization

In 2014 trade as share of GDP was 70.8 percent, down less than three percent from the two years prior (“Merchandise trade”, n.d.). This is one of those areas in which only time will tell whether Germany will continue to prosper and be the financial backbone of the Eurozone.

Over the years, the World Trade Organization (WTO) has prided itself as the central element in the international economic management system across the world. This system incorporates other international bodies such as the World Bank, the International Monetary Fund as well as a series of other regional trade regimes that are growing. Collectively, these structures provide a mechanism that addresses international economic interdependence as well enhancing economic interactions that offer the promise of maximizing social welfare across the globe. These aspects have been brought about due to the focus given in the post-Cold War era where international relations have evolved beyond a narrow emphasis on politico-military affairs.

Germany is an excellent country to expand new products and services into as it is located in the heart of Europe, following a constitutional monarchy with a parliamentary government and a Prime Minister which has the power to appoint and remove ministers. As a member of the G8, Germany contributes significantly to the world 's economy. The Gross Domestic Product in Germany was valued at USD $3634.82 billion in 2013 which is equivalent to 5.86% of the world’s economy. In Germany, more than 95% of the population speaks German as their first language.

The free trade agreements has led to a trade balance for Germany which has been quite consistent for the last 10 years; they had a trade deficit in 2006, a surplus in 2007, then due to the financial crises a deficit in 2009, but the balance rose a little in 2010 (Germany:

Singapore has a highly developed market which has historically revolved around extensive exports trade, in other words an export driven economy hugely dependant on export of goods to other countries.

Germany, despite having the largest economy in Europe and fifth largest in the world, has begun to feel the effects of the worldwide economic downturn and debt crisis in Europe. Economists have even begun to predict stunted growth in the incoming year. A council of economic advisors was established in the country in 1963. The council has forecasted the inability to grow in 2013 because of the anticipated continuation of decline in exports. This decline has been attributed to the debt crisis in greater Europe. They have predicted, however, that unemployment rates will remain relatively stable, at under 7%. In this paper, we will go in

In 2001 China became a member of the World Trade Organization. China’s accession into this organization had many advantages and disadvantages for the country. Some of the advantages of being a member of the WTO for China was the strong increase in GDP growth rate which the country experienced as a result of the facilitation of trade and the increase in imports/exports. Some of the disadvantages of the membership to the WTO were the negative effects in health care, inequalities in income distribution, and inefficient pension funds.

For the past decade, Germany has maintained an economic advantage over other countries in the euro zone. Its GDP has been constantly growing and it continues to tower over its neighboring countries. In 2011, Germany’s GDP “grew by 3.6%” while the rest of the euro zone “fell short of 1%” (German Business: A Machine Running Smoothly). One main reason for Germany’s economic growth is manufacturing and exporting. Germany is the largest exporter in Europe and the second largest around the globe. It has a very efficient system of manufacturing products that are in high demand in the world’s richest countries. Cars, chemicals, machinery, and consumer goods are Germany’s primary exports, and China is one of their biggest customers. In December of 2011, Germany managed to sell “5.4 billion euros” of goods to China, topping the “5.3 billion euros of exports to the U.S” (Black). All of Germany’s exports maintain a global appeal. They make specialized products that have a large and growing market. In fact, it is estimated that the total value of Germany’s exports in 2012 was just shy of $1.5 trillion, and that exports make up 52 percent of Germany’s GDP (EW World Economy Team). So on one hand,

On November 8, 2012, the European Union ended one of the most technically complex, politically sensitive and commercially meaningful legal disputes ever brought to the WTO. It ends a twenty years old trade dispute over access to the EU 's $6.7 billion banana market, the world 's largest. The parties, finally, agreed to cut import tariffs on bananas from Latin America, many of which are grown by U.S. corporations like Dole Food Co., Fresh Del Monte Produce Inc. and Chiquita Brands International Inc.

With foreign manufacturing industry entering Singapore market the manufacturing sector and its share in GDP grew from 16.6% in 1965 to nearly 30 % in 1980 and in 1993 manufacturing contributed to about 28 % of the total GDP and accounted for nearly 28% of employment. Singapore’s GDP raise to 13 times between 1960 and 1999. The nation has shown greatly decrease of figure of poverty. (United Nations 2000)

As I am sure you are quite aware, the trade and use of asbestos has always been a contested issue on and international scale. Canada itself was involved in an international trading dispute regarding asbestos with France, when the French government prohibited the import of all asbestos and asbestos products in a 1996 decree. The economic sanctions that have been placed on Canadian asbestos products by France have arguably damaged the historic economic and political relationship between the two countries. With the prohibition of Canadian asbestos exports obviously negatively impacting domestic producers, I think it was in Canada’s best economic interests to dispute the trade issue with the World Trade Organization (WTO). The WTO (through its dispute settling process panel and appellate board) found France justified in its prohibition of asbestos products which would have a severe impact on Canadian asbestos exports both with France and gradually worldwide. Despite Canada’s asbestos economy being severely weakened, I feel that the right decision was made insofar that human health and life was protected, even over any trade agreement that was made between the two countries. Enclosed I have written a descriptive and analytic report with my findings on the whole asbestos dispute between Canada and France, and its eventual repercussions for all parties involved.

However, there seem to be disagreements on China’s position and performance in the WTO in the future. It is being said that China’s view on the WTO’s multilateral trade system is ambiguous. Furthermore China is blamed for being irresponsible when it comes to maintaining he international order and global economic governance. According to Rafael Leal-Arcas, 2010, China has been playing at best a passive role and, at worst, a disruptive role with respect to the global trading system. “China would be broken, and a broken China could break the WTO. Therefore, the WTO’s most difficult challenge may be to discipline trade relations among China and other WTO members. All WTO members should work collectively to encourage China to change its behavior.” By so doing, they may promote the development of the WTO. (Susan Ariel Aaronson, 2010)

Furthermore, as part of the EU, Germany, and her neighbors enjoy the benefits of no tariffs and reductions in nontariff trade barriers. Because there are no customs duties, taxes imposed on imported goods and services, Germany has become more competitive in exporting their products and services internationally. Likewise, reductions in nontariff barriers, such as levies, embargoes, and other restrictions, allow Germany to move their goods and services throughout Europe without restriction. Overall, these removals and reductions have created a level playing field in free trade amongst Germany and her neighbors.

Singapore is a very competitive country with regards to its economy. It is an ideal place to start a business as it has risen its rank from number seven to number six on doing business according to the World Bank (2017). Although this country is highly competitive, the economic situation of Singapore is being affected as it is dependent on exports. Because of recent changes in the global economy, Singapore faces weak global exportation demands, contributing to Singapore’s economic situation is the restructuring of the Chinese economy as their economy has since slowed down. even so, the government is expected to remain stable for 2017 as the government has developed plans that focuses on the investments of certain sectors of the economy. The population of Singapore is steadily rising with an estimated two hundred sixty-one million people in 2016 (The World Bank, 2017).

Germany has the world’s fourth largest economy and contributes one-fifth of the European Union’s (EU) gross domestic product (Xing, 2012). It is stated by Ropke (1990) that Germany’s economy is based on the “social market” which follows the Laissez-faire (free market) principles, but with a considerable degree of government regulation and ample social welfare programs. Moreover, Germany has the largest consumer market in the EU with a population of 82 million (World Bank, 2012). This makes it attractive