《10 benefits of free trade and the WTO system》.pdf

10 benefits of the WTO trading system From the money in our pockets and the goods and services that we use, to a more peaceful world—the WTO and the trading system offer a range of benefits, some well-known, others not so obvious The world is complex. This booklet is brief, but it tries to reflect the complex and dynamic nature of trade. It highlights some of the benefits of the WTO’s ““trading system, but it doesn’t claim that everything is perfect—otherwise there would be no need for further negotiations and for the system to evolve and reform continually. Nor does it claim that everyone agrees with everything in the WTO. That’s one of the most important reasons for having the system: it’s a forum for countries to thrash out their differences on trade issues. That said, there are many over-riding reasons why we’re better off with the system than without it. Here are 10 of them. The 10 benefits 1. The system helps promote peace 2. Disputes are handled constructively 3. Rules make life easier for all 4. Freer trade cuts the costs of living 5. It provides more choice of products and qualities 6. Trade raises incomes 7. Trade stimulates economic growth 8. The basic principles make life more efficient 9. Governments are shielded from lobbying 10. The system encourages good government 1 1. The system helps to keep the peace This sounds like an exaggerated claim, and it would be wrong to make too much of it. Nevertheless, the system does contribute to international peace, and if we understand why, we have a clearer picture of what the system actually does. Peace is partly an outcome of two of expanded—one has become the slide into serious economic trouble for the most fundamental principles of European Union, the other