Question

Identify and critically discuss four (4) key priority issues impacting international trade which you believe the new WTO Director General should seek to address in order to get the global economy going again. Ensure that the identified issues fall within the mandate of the WTO.

Include in your discussion, reasons to support your identified priority issues and strategies which can be considered for implementation by WTO members to deal with the identified issues.

Answer

Introductory Paragraph

We are living in a world where extraordinary changes are the only constant because the speed at which things change has caused a lot of influences. Some of these influences are the changes in the production and consumption configurations, and as such the current technological innovation. These are now the new ways of doing business and factor in the policies. The World Trade Organization has selected a new director general, and in this study, we will critically assess four (4) essential factors that will impact international trade, and ways in which she can steer the ship to shape the future of world trade.

The Increasing Tariffs

Based on my academic research, Global trade surges the number of goods that local consumers can actually choose from, reduces the cost of those goods as competition increases, and allows local businesses to ship their products abroad. The rising tariffs is one of the main issues the new director general should look at firstly. This is so because tariffs affect price, hence an increase in the charges of imported goods. For the reason that it is not mandatory for local producers to reduce their prices from amplified competition, this will result in local buyers left paying more, (Dixon 2017).

With simplicity and clarity, tariffs also reduces the efficiency and effectiveness by approving certain companies that would not normally exist in a competitive market to remain open. For example, the United States is considered the worlds leading economy, because they possess unmatched economic power. Lets look at a practical example, the former president of the United States engaged other countries in a series of trade wars by using tariffs as its primary weapon. This has resulted in currency influence and manipulation on China when the former president placed ten (10) fifteen (15) percent tariffs on Chinese production that worth billions, and likewise the Chinese government in retaliation to this, also placed tariffs on all United States tariffs that eventually brewed a trade war, (Radcliffe 2019).

Technology

According to Wang (2019), one of the weightiest measures of change is technology. This is so because weve seen how technology has revolutionized communications, and transportation. Case in point such as, new mobile devices, 3D printing, and many more technological features that information technology will continue to impact. Based on academic research, I must agree that technology has in fact impacted international trade because it has created a digital information highway for export and import businesses. For example, the Japanese car maker Nissan has big plans to invest in its manufacturing plant approximately 1 billion dollar to launch out greener technology. In conclusion Mrs. Okonjo - Iweala the new director general will have to ensure that the appropriate attention is given to any technological issues that may impact international trade.

Brand Theft & Imitating

According to Tully (2018), this is an ongoing issue concerning intellectual possession theft and brand imitating. Based on academic research, it seems like this issue is first and foremost between China and the United States. Let us put this into perspective, the former president of the United States blamed the Chinese for playing a major part in widespread intellectual possession theft via cyberattacks and enforced technology transfers. For example, over the years, numerous name brand companies internationally, suspected China to imitate a whole lot of brands and products. The director general must now put measures in place to cancel any form of brand theft or imitating, because this is in my opinion a very serious factor that will certainly impact international trade if it's not capped.

Based on Tully (2018) suggestions brand theft is considered a huge global trade concern. Imagine a company dishonestly benefitting from innovations made by hard working establishments? No doubt that acts such as these will moderate decrease the revenue for businesses to actually invent and as such will result in the market being swamped with counterfeit products that should not be there. In conclusion to this, stealing trade confidences is a major issue, therefore I would advise the director general to put the full measure of precautions in place so that businesses who paid out millions on research and development are not being robbed.

Government Interference on Shipments

Werner (2017) stated that international threats are more real now more than ever. He supported the fact that in the context of international trade, shippers are under excessive attack which is as a result of Brexit and tariffs. Based on academic research, added tariffs will cause negative impacts on the supply chain, hence shippers must closely monitor so that they can fit in appropriately. A practical example of governmental interference on shipments is when Iran seized about Three (3) oil vessels in the Persian Gulf, according to a news source this was an act of retaliation against the United States for diverting their oil sales.

Conclusion

If tariffs continue to increase and are being imposed, then this will greatly impact price in international trade terms, and hence will increase the charges of imported goods. Technology has brought international trade at its apex, this is so because trading can be done digitally, and information is instantly available. Brand theft and imitating is very real, this is the personification of earning financial credit unworthily, and as such must be looked at in short order. Lastly, when we measure how much the government interference on shipments has negatively impacted international trade, then the director general has her work cut out to do.

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