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12 Apr 2024  (2059 Views) 
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Tan Kin Lian - Perspectives


WTO Promotes Free Trade

1. The World Trade Organization (WTO) works to promote fair and smooth trade between member countries. Here's how the WTO rules address tariffs and subsidies:

  • Tariffs: WTO agreements generally discourage member countries from imposing high tariffs on imported goods. Tariffs are taxes placed on imports, making them more expensive for consumers in the importing country. This can discourage imports and protect domestic industries. The WTO mendorong (encourage) countries to lower tariffs through negotiations.

  • Subsidies: The WTO also discourages member countries from providing subsidies to their domestic companies, as this can give them an unfair cost advantage over foreign competitors. However, the WTO recognizes that some subsidies may be necessary for development purposes, and there are some exceptions to the rules.

2. While the WTO discourages these practices, it doesn't completely ban them. There are some exceptions and loopholes that countries can use under certain circumstances. However, the WTO framework does provide a mechanism for challenging unfair trade practices through a dispute settlement process.

3. Overall, the WTO's aim is to create a level playing field for international trade, benefiting both producers and consumers.

4. I wish to give my perspective (TKL). This rule was created to give an advantage to the developed countries. They have the capital and technology and they wish to have free access to the markets of the developing countries. 

5.  I prefer that each country should be allowed to set up tariffs or give subsidies to protect its local producers. This may increase prices for their consumers, but it is a decision that each country should be allowed to take in its own national interest. 

6. I believe that the WTO rules are not enforced and that many countries have implemented tariffs and import controls. This is the reality that most countries have to live with. 

Tan Kin Lian



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