Moldovas Accession to the World Trade Organization (WTO)

Moldovas Accession to the World Trade Organization (WTO) The World Trade Organization (WTO), successor of the General Agreement on Tariffs and Trade (GATT) founded in 1947, today represents a common institutional frame- work for the development of trade relations among its members, based on the principles harmonized at the international level through a number of multilateral agreements. At present the WTO includes 140 countries, with another 32 countries having an observer status. Moldova, Armenia, China and Vanuatu are at the final stage of accession. Today only a few countries with planned economies in their past and some developing countries have remained outside the WTO. Integration, of the developing countries and of the countries with their economies in transition, into the international trade system offers a good opportunity to take full advantage from the participation to enter the globalization process. Countries with their economies in transition view the WTO, whose rules of international trade are being established and monitored , as a structure that offers an important opportunity for integration into the world economy and of the improvement of their national legal framework in the economic and commercial field. The WTO basic functions are as follows: to facilitate the application, administration and successful functioning of the WTO laws and regulatory framework; to promote the achievement of objectives of each WTO agreement that concerns specific trade issues; Proceeding from these functions, the WTO can be viewed as an international structure, which for its member states represents the following: a forum for negotiations of issues concerning trade relations and matters incorporated into international multilateral treaties; a forum for future international negotiations, representation of each members interests; a legal and institutional framework for the application of the results of talks between states; a framework ensuring the application of rules and procedures for settling disputes between states; a framework providing for the use of the mechanisms of scrutinizing and ensuring transparency of commercial policies. 3.1. Advantages of the World Trading System The world trading system is not perfect, particularly taking into account the attempts of the Member States to have after their accession, the current rules revised. However, since the establishment of the WTO in 1995, countries involved in this system maintain that a state outside the system should be aware of the advantages the WTO offers to its members and of the reasons in favor of the WTO membership. In most cases, the decision of countries to apply for the WTO membership was influenced mainly by political factors, as their economic and commercial interests were not one of the major factors in initiating the accession process. On the other hand, candidate countries were conscious of certain disadvantages of staying away from the WTO bilateral and multilateral agreements are not sufficiently comprehensive, the image of a non-member state among foreign investors is not favorable enough etc. In this order of ideas we suggest looking into the advantages of accession to the WTO. As it was mentioned above, the WTO rules were produced on the basis of the world trading system, specifically a set of rules established by the consensus of all 140 Member States of the World Trade Organization. These rules are said to make life easier for everybody, since the decisions within the WTO are taken by consensus, likewise all multilateral agreements have been negotiated and then ratified by the parliaments of each Member State. The WTO agreements are compulsory for every country, developed or less developed, big or small. Without a multilateral forum, such as the WTO, the more developed countries would have had more freedom to impose unilaterally their will on their smaller partners. Free trade reduces living expenses. A great deal of research has been done on the conflict between protectionism and free trade. Protectionism is expensive: it always raises prices. The WTO system pursues the goal of removing trade barriers by following the rules of the game set by mutual agreement and is based on the principle of non-discrimination. This brings lower production costs, lower prices for goods and services, and as a result, life becomes less expensive. The world trading system offers a much wider range of various products. Import provides for a better choice of goods and services of different quality. Even the quality of local goods can be improved in conditions of competition generated by import. Imported goods are not used only as a finished product, but also as materials, components and equipment for the production of local goods. This allows manufacturers to broaden the range of products, services and technologies applied, which ultimately contributes to the increase of exports. Trade increases incomes. Analysis and estimates of the impact of the Uruguay Round (in other words, of the establishment of the WTO) or of the creation of the European Union (EU) common market, proved that these processes brought about considerable additional revenues, which greatly stimulated economic development. Trade incurs challenges and certain risks — local manufacturers have to offer products of the same quality as the imported ones, yet not all producers succeed in this. However, the fact that there are additional revenues means that there are resources for the governments allowing for redistribution of the available benefits. This can help business operators become more competitive in the traditional fields or in the newly developed and promising ones. Trade stimulates economic growth, which implies, among other things, creation of new jobs. It is true, however, that some jobs are lost as a result of the expanding commercial activities. The same applies to the technological progress: the implementation of new technologies creates new jobs, while at the same time, cuts down jobs requiring an un- skilled labor force. In both cases, a coherent policy facilitates settlement of the employment problems, thus ensuring a better final result, particularly in conditions of a free trade, and also provides for the use of advanced technologies. It is known that trade, which ensures a more efficient and adequate use of production resources, generates division of labor among countries. An additional advantage offered by the WTO system is an increase of efficiency with less expenses. This becomes possible due to the important principles laid on the basis of the system. These principles are as follows: non-discrimination, transparency of rules and regulations, commitments to remove trade barriers and increase the access on other markets, fostering trade through making customs procedures easier and uniform, and others. à ¯Ã‚ »Ã‚ ¿ In the WTO framework governments are in a better position to defend themselves from being lobbied by some smaller groups. Thus, governments can carry on a commercial policy that satisfies the interests of all parties involved in the economy. At first sight, the application of certain restrictions on imports seems to be an efficient method of supporting the economic sector. In fact, it imbalances the economy and affects other sectors. At the same time, it is well known that making exceptions leads indirectly to tax evasion and corruption. In some cases, even the protected sectors are affected. When the policy of support given by the State is incoherent and is not rendered until the final consolidation of the capacities of enterprises, the latter at a certain point can go bankrupt or be swallowed by big corporations. Due to the fact that the WTO framework covers a wide range of sectors, if there is a case in which a pressure group resorts to lobbyism in order to be protected, the government can put up resistance to such pressures, motivating it by the fact that an agreement suitable for all sectors of the economy has to be reached. In practice governments often invoke such a reason. The system encourages good government. Governments often use the WTO framework as a practical external restriction for the elaboration of economic policies, by giving the following reason, we cant act differently because its against the WTO regulations. According to the WTO rules, once a commitment has been undertaken, it would be difficult to change this decision. For business this means a greater certainty and clarity in conditions of trade. For governments this means more discipline and correctness. Also, the world trading system contributes to peace consolidation. It seems a bit exaggerated, and yet, the system contributes to strengthening peace in the world, since, to some extent, peace is a result of the application of the two basic principles of the WTO, particularly, ensuring continuous trade and offering a fair and constructive way to settle trade disputes. An eloquent example is the trade war of 1930, when the involved countries competed in raising trade barriers in order to protect local manufacturers. This fact deepened the Great Crisis and played a certain role in the outbreak of World War II. A key-element of the WTO system is the fact that disputes are solved in a constructive way. Naturally, the development of trade may generate trade disputes which can lead to serious conflicts. Therefore, a great deal of tense international trade situations can be settled by the organizations specializing in tackling trade disputes, such as the WTO. A growing number of disputes brought before this organization reflects closer economic ties throughout the world, a growing number of the WTO members and an increasing confidence in the capacity of this system to settle disputes [2]. To summarize the advantages of the WTO membership, we can name some of them: a) the implementation of the WTO agreements, in general, offer wider trade opportunities to the Member States; b) multilateral regulations with a higher degree of restrictions ensure a safer and a more stable trade environment and provide more certainty in trade relations; c) only Member States can take advantage of the rights laid down in the WTO agreements; d) the WTO agreements have substantially improved transparency of commercial policies and of the practices of trade partners, a fact that strengthens safety and stabilizes trade relations; e) only the WTO members have an access to the mechanism of settling disputes with a view to defending their rights and commercial interests; f) membership status offers an opportunity to take part in multilateral negotiations, thus, ensuring the promotion of each members commercial and economic interests. 3.2. The Republic of Moldovas Accession to the WTO Accession, accomplished in the appropriate conditions, is a rather difficult and complicated process that may be delayed and that requires a high level of competence and coordination of government institutions, as well as a political consensus to efficiently promote national interests. The accession process involves thorough bilateral and multilateral negotiations with all WTO members concerned in the policy carried on by the candidate, which can procrastinate the process of accesion. Countries in the process of accession are bound to examine and adhere to all multilateral agreements, and, optionally, to the two plurilateral agreements, adhesion to which de jure is not compulsory. In fact, the contracting parties to these agreements expect that the candidate becomes a party of these agreements in the accession process to the WTO. This condition turns automatically into a commitment, also observed in the context of discussions and positions of the WTO member states during multilateral trade negotiations. Accession of the Republic of Moldova to the WTO was determined by the advantages offered using the legal framework of international trade and by the reasons in favor of WTO membership. Back in 1993 the Government of the Republic of Moldova applied to join GAIT. The request, which following the creation of the WTO in January 1995, had been reiterated by Moldova. The purpose of accession to the WTO was to urge the process of integration into the world economy, which provides for building a democratic society, an economy based on market economy principles. The accession was motivated also by specific disadvantages of a non-member status in the WTO, in conditions when bilateral trade agreements were not sufficiently developed. It was also motivated by an adverse image, especially among foreign investors, generated by the out of the system status. Accession negotiations coincided with the structural and systematic reforms program and with the elaboration of the countrys economic policy, including the commercial one. However, an underdeveloped administrative system and a lack of human and financial resources directly affected technical capacities providing for this complex process of accession to be conducted shortly and efficiently. Besides, in addition to the fact that it was necessary to adopt a concept to promote a commercial policy which would comply with the WTO multilateral obligations, Moldova, as any applicant country, was required to accept concessions with regard to the access to the goods market and to the consolidation of customs tariffs, as well as with regard to the commitments in the field of internal support in agriculture, and the special commitments concerning trade in services. It should be mentioned that in the course of Moldovas accession the attitude of the main trade partners towards the applicant countries became harsher compared to the period of accession to GATT. The standards of adhesion have been raised considerably. Some WTO members took a firm position requiring the applicant countries to accept a higher level of obligations compared to the one accepted by the initial members, having already included the eventual results of the next future multilateral negotiations. In practice, thi s means that the Republic of Moldova had to accept the level of tariffs consolidation and certain commitments in the services area comparable to the level of the developed countries. At the same time, the Republic of Moldova did not have the opportunity to benefit from certain provisions stipulated by the WTO agreements, which provide a special and preferential regime offered to the developing countries. The status of a developing country was not given to any applicant country with their economy in transition during the period in wich they entered into the accession negotiations with the WTO. This situation made negotiations a lot harder for Moldova  than for other candidates included in the UN list of developing countries. Despite these difficulties, as compared with the other CIS states, Moldova launched a very active process, being outrun only by Kyrgyzstan and Georgia. Initially, in conformity with the accession procedure, a memorandum on the foreign trade regime was presented. Later, a Working Group for the accession of the Republic of Moldova was created comprising 24 WTO members (the European Union having one vote), followed by rounds of questions and answers. Numerous bilateral and multilateral negotiations have been conducted on the access to the goods and services market, on offering subsidies in agriculture and on aligning national legislation on the WTO regulations The most intense negotiations were conducted with Australia, Bulgaria, Canada, the Czech Republic. India, Japan, Mexico, Poland, Slovakia, USA, Turkey and the EU The longest in duration and the most consistent were the negotiations with the EU, the United States, Australia, Canada, India, and Bulgaria A special part in the accession process was both the adjustment of the current legislation to the regulations adopted by the Uruguay Round, and the elaboration of new laws in the areas that have a direct or indirect impact on foreign trade. The negotiation process lasted long due to a negative influence of a number of factors, some of which have already been mentioned. Another important factor was the absence of an adequate institutional framework and of mechanisms of elaboration of policies necessary for the operation of a market economy at the beginning of the negotiation process, which was supposed to ensure rapid development of the latter, ft is also known that frequent changes in the upper level of administration affect and considerably tarry, the accession process. These reasons have slowed down the elaboration and adoption of an adequate national legislation, a fact noticed by the Working Group members on the accession of the Republic of Moldova to the WTO. Protraction of the Republic of Moldovas accession has partially offered some facilities to the WTO members that only the WTO framework can offer. Since the presentation of the memorandum on the foreign trade regime and, later, of the replies to the questions of the working group members for working out the Report of the Working Group and of the Protocol of Accession, Moldova had to submit a great deal of information from different fields related to commercial policies, which required significant expenses. The more this process was delayed, the more information was requested, which sometimes indirectly allowed the member states to speculate on some of the plans or strategies of the applicant countries. For example, in the process of the accession of the Republic of Moldova, information in the following areas was required: practices and prices regulations, the taxation system, subsidies in agriculture, foreign investments, the environment, customs tariffs, including preferential tariff s, payments for customs procedures, exemption from customs duties, license on import, export regulations, trading enterprises owned by the state, standardization of imported goods, sanitary and phyto-sanitary standards, foreign exchange operations, and the protection system of intellectual property rights, etc. It should be mentioned that the presentation of this information was compulsory or unavoidable, since the purpose pursued was to advance the accession process. On the other hand, all these have led to facilitation of the aims of the major WTO actors, who use different levers in the accession process in order to have the applicant countries undertake anticipated commitments within the WTO, thus ensuring their alignment on the subjects discussed during multilateral negotiations. As a non-member country we have already missed many opportunities to negotiated on various bilateral agreements with the states of Central and Eastern Europe the WTO members. Foreign business operators are discouraged by the lack of a clear set of rules, which would allow them to set up their business on the basis of internationally recognized principles. The relations of cooperation in the economic and commercial fields with the countries of the European Union or of the Central Europe Free Trade Area (CEFTA) have been blocked or not given pertinent importance. Treatment of the economic system of the Republic of Moldova as one that is not based on market principles

Problems in implementing a self-regulation system: the case of a young advertising industry Essay

Advertising can be both beneficial and harmful to the consumers. However, in the perspective of kids, they might think that advertising is good, essentially when they get into contact with something that entices them. Honestly, advertising is bad for kids. The primary objective of the advertisers is to market their products for people to buy. Besides, if we are happy with the way things are, then we develop less interest to buy. This is the secret of the advertisers; they subtly try to make the consumers unhappy so that the chances of buying advertised goods get facilitated. The advertisers develop mechanisms to persuade the consumers to buy the products. In many occasions, most of what the advertisers are selling are images or a lifestyle rather than the product itself. Average Americans gets exposed to 3, 000 advertisement per day, thus, by the time of graduation in high school, and they will have watched 350, 000 television commercials. In the bulletins of the commercials, the con sumers still have to go through the photo-shop besides putting ton makes ups from the advertisers. Therefore, it is an illusion of their real appearance. Advertisement is done on television, radios, internet, billboards, cellphones and magazines. As Higgins, (2008) put it, advertising is a legalized lying. This is standing the truth because some of the products advertised provide different information to the real product. For advertisement targeting at boys, they develop the notion that violence is the answer to making fun among them. However, for girls, they show that dolls and makeup is their interest. According to ZÃŒÅ'abkar & JancÃŒÅ'icÃŒÅ', (2004) as a young girl sees advertisement for makeups, the information derived is to advise them to try the product and that provides comfort for them at young age. Advertising makes kids lose their creativity and imagination. Hence, the more they get exposed to advertisements, the more they develop an addiction and instead of creating time to play and socialize with peers, they rather get glued inside watching television which is unhealthy. According to research evidence, 16 percent of the ki d are overweight and need to play because they are inactive. Televisions continually brainwash many kids with advertising.Advertising is an important institution because it provides the required information and knowledge about the products and services. However, ethical standards in advertisement must be observed. Many ethical concerns have been raised by myriad stakeholders in the company of advertising. Ethics, mostly referred to as the domain of inquiry is a discipline in which matters of wrong and right, virtue and vice, good and evil are systematically examined. Advertisement ethics examines advertising morality and advertising systematically. Advertising of toys, none violent games and sugar loaded focuses on the children who are the highest consumers in the market. Besides, decisions on advertisement are about making morally right decisions. The morality of advertisement includes all parts of sourcing of product quality and pricing. Scholars have viewed ethical behaviour in d issimilar ways; however, it is based on the experiences and personal values (Taylor, 2008). Ethical advertisement forms the marketing strategies of the company. However, it all counts on the company objectives and what they know is expected by the consumers in the product. Theoretical Approach to Ethics in Advertising             The publication of the affluent society provided influential and important critique of advertising. It argues that businesses concentrate on generating rather than focusing on consumer satisfaction. The approach claims that the company system has assumed sufficient power and size to render the consumer on making personal decision such as what and how much is produced. Ideally, this characterizes the revised sequence-a categorical denial of the accepted sequence of the independence of the consumer, which accords the economic system power to the individual. Besides, the modern industrialized countries had an effectively planned economy ruled by large corporations with minimal respect to the interests of the public. Galbraith also observed the massive expenditures for creating a huge scale. Elsewhere, in 1958, Packard’ populist work titled the hidden persuaders brought moral concerns about consumer manipulation.Besides, Bentham on his personal argument would o ppose advertisement. The utilitarianism theory, however do not offer a clear-cut opposition for advertisement. He asserts that he greatest happiness of the greatest number gets determined by the consulting the hedonic calculus. Therefore, it is of fair reasoning that the advertisement is bad for the kids. However, he argues that if greater happiness is achieved through advertisement, then there is no harm. But the consequence is what counts. Based on the utilitarianism advertisement is harmful to kids due to its unhealthy consequences. On the other hand, Kant would declare in no certain terms are advertisement beneficial for the kids. What is wrong is wrong†¦period. The theory argues that it is wrong because it translates to dishonesty. Advertisement on kids is cheating them and treating the kids as end agent. As Kant puts it, this violates the categorical imperative (Kopf, 2009). Besides, the advertising consequences are irrelevant in determining the ethical or unethical of th e advertisements. Dishonesty is dishonesty and advertisement to kids is immoral. The duty of an individual is to tell the truth, to be honest in the information given.Mumel, Pisnik, Horvat & Makovec, (2013) explain the Rand theory by noting that he would oppose advertisement since it compost of dishonesty, however not on deontological grounds. Besides, dishonesty is harmful since it has dire consequences on the lives of the consumers especially the kids. Providing false information in the advertisement is dishonesty because it is a pretense that the product is not what is advertised. Besides, refusal by the industry system to perceive the facts I like shutting the eyes of the consumers to reality. According to the theory, advertising is unethical because advertising to kids operates to destroy and negates the objective and necessary reason for promoting the consumer’s lives. Dishonesty denies the consumers the efficacy to make individual decisions thus depends on other people’s opinions. According to Rawls, he would conclude that advertisement is unjust, period. Advertisement is harmful since it violates the principle of equal liberty of minimal economic and social inequality. Therefore, according to Rawls, it is ethical to raise a person from poverty to security than to provide the individual with an equal amount of wealth or societal well-being. Ethics, he argues, requires financial gain sacrifices in order to hold justice for the consumers who are least advantaged. According to his theoretical work, he insists that what is wrong is wrong. It is wrong due to its dishonesty. Conversely, the advertisement industry is cheating the kids with their advertisements. Conclusion             Advertising is widely bombarded by critics. Besides, it is accused of promoting consumption and materialism, using sex cell, stereotyping, of causing people to buy the product they need, manipulating consumer behaviour or of taking advantage of children and overall it contributes to the downfall of the social system. The advertisement critics abound. Since hardly a week can go without some company or advertisement or the advertising industry being focal point of controversy. Even if the consumer argues it out that they hold the sovereignty of the economy, the industry of advertisement does not provide an ethical justification of the traditional marketing theory. The emergence of ethical concerns in organizations is a complex phenomenon that incorporates social interaction and individual interpretation. Theorizing about ethics needs to reflect and match the complexity References Higgins, N. (August 20, 2008). Advertising ethics. New Scientist, 199, 2670.)Kopf, D. A. (2009). Marketing, information and economic growth.Mumel, D., Pisnik, K. A., Horvat, M., & Makovec, N. (January 01, 2013). What are the characteristics of a good ad for children aged 9 to 12? Creator’s and parents perspective. Marketing Theory Challenges in Emerging Societies.Taylor, G. (August 20, 2008). Advertising ethics. New Scientist, 199, 2670.)ZÃŒÅ'abkar, V., & JancÃŒÅ'icÃŒÅ', Z. (January 01, 2004). Problems in implementing a self-regulation system: the case of a young advertising industry. Economic and Business Review, 6, 2.) Source document

Critical Thinkings Paper on Kinship Organization

Foraging is the oldest way of life by human being. It regards to how life was so many years back. In those days, people stayed in small gatherings called bands. The mode of living was nomadic with a subsistence system, such that production was only for sole consumption in order to survive. Kinship was given a priority because it ensured unity amongst them in that, wealth belonged to the community. This article attempts to address the culture of the foraging societies, and identify three specific examples of how kinship system of the chosen culture impacts the way this culture behaves in terms of thinking, acting and living. It will finally compare this with another society to see whether kinship affect these same behaviors. The first example falls under conflict. This was hard to find in foraging societies unlike in today’s societies. The society had no leadership, nothing like compiled laws to govern the society, no system to curb impunity or even controlling it. The major reason that contributed to reduced conflicts is due to the small groups. Kinship acted as the central system of operation. In addition, no one owned anything and the culture of sharing what there is was the order of the day. In other words, people lived like one big family. People in this case, knew each other perfectly. They understood each other’s traits in terms of being hardworking, stingy or being indolent. This helped in accommodating each other reducing collision among them. The second example is the social organization. The foraging communities had a universal ancestor. The relationship between people checked on how they regarded each other. In terms of kinship, the nuclear setting of a family was given a priority in foraging community. This was mostly triggered by their adaptations to various conditions. Many families staying in a region were referred to as bands. A band was only required to carry a specific capacity of families. If a band was not very big, it enhanced sharing of what there was in the society. The third example falls under descent, which was closely connected, to kinship. This described how a child was connected to the parent. This was regarded as passing of membership where a child was adopted directly as a member of the society. In some communities, descent was a way of linking people together into such roles as marriage or solving of conflicts. Descent comes into ways namely; unilineal and bilateral. The former is closely associated to either of the parents. It therefore connects people who are related due to parenthood. In a bilateral setting, both man and woman is very important. Individuals hold that, they are relatives to people from either side whether from the father or the mother. The Americans embrace bilateral kinship way of living. Comparing the above culture with another one from a different community, so many differences are evident. To begin with, the foraging societies did not have conflicts due to their small groups, which ensured they lived as members of the same family. In many American societies, this is not possible. Conflicts are the talk of the day. Unlike in foraging societies where property was jointly owned by the community, this is no longer observed. It is every body for himself. This in return has brought so many conflicts. Another comparison is that of families living together like one family. This is no longer practiced in many societies. Although families are close to each other, the styles of living are different. The mode of sharing cannot be compared with that of foraging society. People in those old days used to share literally everything but in today’s community, it is not practiced. There is little to share if any. Finally, the bilateral kinship is the only thing being practiced; unilineal is hard to find in any community. To conclude, I must admit that the foraging communities cannot be compared with today’s given that so many things have changed. It is hard to find good neighborliness like what was there in those days.

Advent of Industrialization Essay - 1214 Words

The advent of industrialization in the early nineteenth-century had wide reaching impacts on economics, politics, society and demographics. The transition from an agrarian and feudal system of production to an industrial and capitalistic system brought about many changes to the lives of Europeans. Some of these changes include gender issues, immigration, medicine, the rise of liberal and socialist politics, and the rise of some famous political movements. In the following essay I will expand upon some of the many ramifications that industrialization brought to fruition. Before the advent of industrialization much of European production was focused on agriculture for practical reasons. A nation must produce enough food to feed its†¦show more content†¦The price of beef, tea and sugar had also come down, allowing many middle class families to enjoy these luxuries in their diet. The middle class may have seen some positive changes during this time period, but the working class was not nearly as fortunate. Conditions for the working class were terrible and unsanitary. Many working class families were crowded into small apartments with dirt floors, no indoor plumbing, and their general lot in life was quite miserable. I remember our book talking about the filth from chamber pots, the mold and mildew that grew rampantly inside these dwellings, and the lack of sanitation. Their diet was also a sad tale. While the middle class could afford beef and sugar, the working class was forced to subsist mainly on bread. This lack of protein and necessary vitamins and minerals would have put them at a much higher risk for disease and malnutrition. The division in quality of life gave rise to a set of political principles and ideologies known as liberalism. The liberal movement in thought, politics, and social constructs can be seen in popular political movements of the mid-nineteenth-century. The Charter Movement in Great Britain can be seen as an example of the liberal democratic movements. Chartism sought to obtain universal male suffrage, secret balloting, removal of a land-owning requirement forShow MoreRelatedThe Advent Of Industrialization Was Marked By Increased1526 Words   |  7 PagesThe advent of industrialization was marked by increased employment, increased scale in production in goods and services, as well as a considerable, increased in the realization of profits my huge industries. The wave of change in industrialization was not only characterized by the large-scale exploitation of alternative sources of energy that were more efficient but also increased urbanization and the large-scale exploitation of raw materials most of which were provided by nature. 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