Comprehension and Discussion Questions. 2. What are the main purposes of the WTO?
1. What is WTO?
2. What are the main purposes of the WTO?
3. Where is the WTO based?
4. What is the structure of the WTO?
5. How are trade disputes resolved?
6. How are the trade rules established?
7. When can the WTO convene a judicial panel?
8. What rule is designed to prevent countries from arbitrarily discriminating against goods from other countries?
9. What did USA accuse the EU of?
REАDING AND SPEAKING
Discuss statements of some people on trade and business. Give your own vision of the statements:
a) – “Free trade one of the greatest Blessing which a government can confer on a people, is in almost every country unpopular.
Lord Macanly (an economist, 18th cent.)
b) – “The majority of businessmen are incapable of original thought because they are unable to escape from the tyranny of reason.”
David Ogilvy (a businessman, 20th cent.)
c) – “To manage is to forecast and to plan, to organize, to command to coordinate and to control.”
Henry Tayol (a manager, 20th cent.)
Do you know when the World Trade Organization came into existence? Try to choose the right answer:
in 1945
in 1940
in 1957
Try to remember the meaning of the following abbreviations. They will be used in the text below.
| GATT – General Agreement on Tariffs and Trade | ГАТТ – Генеральное соглашение по тарифам и торговле |
| WTO – World Trade Organization | ВТО – Всемирная торговая организация |
| GATS - General Agreement on Trade in Services | ГАТС – Генеральное соглашение по торговле услугами |
| TBT – Agreement on Technical Barriers to Trade | ТБТ – Соглашение по техническим ограничениям по торговле |
| ITO – International Trade Organization | ITO – Международная организация торговли |
| TRIPS – Trade-Related Aspects of Intellectual Property Rights | ТРИПС – Торговые аспекты прав интеллектуальной собственности |
| NAFTA – North American Free Trade Agreement | НАФТА – Соглашение о свободной торговле Североамериканского региона |
Ex. 1. Read the following information on GATT and WTO and make your own conclusions. Do you think that the WTO is a simple extension of GATT or is it much more?
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| GATT - was ad hoc and provisional. The General Agreement was never ratified in members’ parliaments, and it contained no provisions for the creation of an organization. - had “contracting parties” - dealt with trade in goods - its rulings could be blocked | WTO - its agreements are permanent. As an international organization it has a sound legal basis because members have ratified the WTO agreements, and the agreements themselves describe how the WTO is to function. - has members - covers services and intellectual property as well - its rulings cannot be blocked |
Ex. 2. Read the following statement from a “World Summit on Sustainable Development” in Johannesburg, 2002. Imagine you were a participant of the meeting. Now you are discussing the problem of globalization at the conference held in Ukraine. What do you think we must do to prevent these tendencies and develop the principles of stable development?
Quotation
“As a worldwide movement, there is probably no turning back from globalization, which proves more and more powerful every year. Obviously, there are positive and negative sides of this growth. On one hand, the integration of the world community encourages developing countries to gain access to the world’s markets and technologies. Globalization’s nay-sayers insist that the rich countries will become more prosperous and the poor countries will stay poor.
Another general feature of globalization, economic development, sometimes comes at a cost to the environment.”
Ex. 3. Discuss the problem of globalization using the following expressions.
| - O.K. Let’s get down to business. | - Так. Давайте возьмёмся за дело. |
| - I’m not sure that’s relevant. | - Я не уверен, что это касается дела. |
| - Let’s leave that aside for the moment. | - Давайте оставим этот вопрос на некоторое время. |
| - Hold on, we need to look at this in more detail. | - Подождите, мы должны рассмотреть это более детально. |
| - Let’s go over, what we’ve agreed. | - Давайте посмотрим, к какому соглашению мы пришли. |
| - I think we’ve covered everything. To sum up then. | - Я думаю, что мы рассмотрели все вопросы. Подобьём итог. |
Brainstorming
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Divide into two groups. Take a sheet of paper and from the given statements choose 10 benefits (I-st group) and 10 misunderstandings (II-nd group) about the WTO. Time limit is 10 minutes. Appoint a spokesperson from each group who’ll present your decisions.
- The system helps promote peace
- The WTO is for free trade at any cost
- The WTO dictates policy
- Disputes are handled constructively
- Commercial interests take priority over development…
… and over environment safety
… and over health and safety
- Rules make life easier for all
- Free trade cuts the costs of living
- It provides more choice of products and qualities
- Trade raises incomes
- The WTO destroys job, worsens poverty
- Small countries are powerless in the WTO
- Trade stimulates economic growth
- The basic principles make life more efficient
- The WTO is the tool of powerful lobbies
- Weaker countries are forced to join the WTO
- The WTO is undemocratic
- Governments are shielded from lobbying
- The system encourages good government
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