Why the WTO is Bad for America
Most Americans do not even know what the World Trade Organization (WTO) is and many others are unaware of its true function. This is a major concern because the WTO has a great deal to do with the current detrimental condition of the U.S. economy.
The World Trade Organization acts as a global government whose sole purpose is to facilitate trade and enforce trade laws. It is essentially a “contract” amongst member nations that severely restricts the ability of countries to handle their own economies and direct their own trade. The power held by the WTO is second only to the United Nations.
It was created on January 1st, 1995 as a replacement for GATT (the General Agreement on Tariffs and Trade). Today, 97 percent of all world trade is facilitated through the WTO. The WTO has perpetuated the status quo and severely limited the incomes and growth potential of countless nations worldwide, and has proven detrimental to the economic stability of the U.S.
12 reasons why the World Trade Organization is bad for America:
1 – The WTO demands the removal of protections from some nations, while allowing protections in others. China, for example, still utilizes tariffs against American companies, while the U.S. is not allowed to put tariffs on Chinese products entering the country.
2 – If a nation tries to protect itself from WTO regulations that are devastating to the country’s trade, the WTO crashes in with fierce punishments seeking to undo the “damage” brought on by the country’s own interest in self-preservation. In effect, the WTO acts as the enforcer for those corporate entities that wish to effectively rule the world under one economy.
3 – While trade is supposed to be “free” it is not tax exempt. Other member nations utilize a value-added tax as a tariff replacement to keep American-made products more expensive, giving the taxes earned back to their own country’s industries – stimulating their economies. The U.S. is not allowed to do this – we cannot tax products entering our country, nor can we stimulate our companies, as we have an income tax system. Every time we have tried to put up measures against the foreign VAT, the WTO has sanctioned us until we stopped. The U.S. is currently under investigation for helping domestic companies. This is neither free, nor fair.
4 – The WTO is a separate legal entity. It is not accountable to voters or any country’s government. The WTO is an extensive bureaucratic nightmare that wields an almost unbelievable amount of power. Its power goes completely unchecked by democratic processes.
5 – The WTO acts as a nation unto itself, wielding legislative, executive and judicial powers. It has the authority to impose rulings on member nations, an authority the WTO has not hesitated to use. If a country disagrees with a WTO ruling, tough luck, because it wields extreme authority over matters of trade. While every member country has one vote, there has never been an opportunity for any nation to vote.
6 – A large amount of the WTO’s regulations were written by large corporate entities that have since been the greatest benefactors of world trade. It is no secret that international bankers, large international corporations and the most developed nations dominate the WTO. Whenever new negotiations are brought forth, the big players always get the biggest forum.
7 – The WTO allows global corporations to sue actual nations. Sovereign immunity is a thing of the past with the WTO. Through the WTO, corporate juggernauts can bend countries to their will on the grounds of “free” trade.
8 – The WTO facilitates lawsuits amongst sovereign countries. Through the WTO, wealthy countries sue smaller countries for their own betterment.
9 – The WTO has furthered the gap between the world’s wealthy and the world’s poor. Under globalized “free trade,” wealth has slowly been transferred into the pockets of the wealthy elite while the rest of us are left to stand around oblivious to this global heist.
10 – The WTO coerces countries to allow toxic imports to cross their borders. This is a major concern for the United States because we are the world’s largest importer. For example, the United States was recently forced by the WTO to accept dangerous poultry products from China on the basis of “free” and unhindered trade.
11 – The WTO has essentially turned the workforce of the world into a global commodity. For America, this has resulted in the exodus of American production to countries with low-cost labor forces. Multinational corporations are offshoring American jobs. Our country has become consumed in debt as we try to maintain consumption levels despite widespread underproduction in all industries.
12 – The American people are deeply upset about the state of the economy, but many have no clue what’s going on. Americans are screaming for someone to “fix” it, but they fail to realize the new nature of this global economy. The supposed purpose of the WTO is to raise the standard of living for the poorer nations while sacrificing the standard of living for richer countries. In the end, this is supposed to foster equality between all nations.
How does the WTO define equality? Does the end justify the means? Why sacrifice the viability of one country just to propel another to an equal playing field, a field they could and should reach on their own?
If the current trend continues, the top 1% of global income earners will continue to expand their own wealth while the rest of us will be left to work at McDonald’s, struggling day-by-day just to make ends meet. Through the WTO, these corporations have essentially assured their place as global monopolies with all the negotiating power.
Companies go offshore to exploit an undeveloped labor class, and then sell us the merchandise at stores like Wal-Mart, where we pay for foreign goods with money that came from and ends up right back in the hands of multinational corporations or foreign-subsidized industries.
The WTO does not help the world and it certainly doesn’t help America. Unfortunately, the vast majority of our politicians blindingly support this system. At least, they better be blind, because if not they are deliberately selling the American people down the river in favor of a few wealthy elite. Regardless, they are supporting an organization whose purpose is to reverse the earned prosperity of the United States, ship our jobs overseas, de-industrialize our country and destroy the standard of living our grandfathers earned by the sweat of their brows.