The World Trade Organization (WTO) is an intergovernmental organization that deals with the global rules of trade between nations. It abides by a set of articles which all member countries must follow in order to facilitate free trade-like negotiations. With such a concrete mission at hand, problems naturally arise because compliance is rare amongst different nations. Throughout the 1990s, trade negotiations and disputes exploded into a larger array of policies amongst more organizations that just the WTO and difficulties arose with member countries of several organizations attempting to satisfy everyone’s different regulations (VanGrasstek, 151).
Over time, the need for multilateral relationships with non-state parties has increased like with international organizations, non-governmental organizations (NGOs) and even smaller activist groups. This is because of the idea that anything a government does domestically tends to change world prices to some extent, thus, affecting trade partners indirectly within. Essentially, other organizations whether global or not, have become more interested in trade policy in response to its direct impact on several of their own matters and as a recognition after WTO Seattle Round protests that their issues need to be addressed before crucial the WTO regulations are implemented (VanGrasstek, 152).
The WTO believes cooperation is a key to determining how to create trade policies that will satisfy all parties involved. In fact, international agreements like the WTO are imperative because countries lean toward using tariffs for their own benefit, or to avoid adopting environmental regulations when countries don’t face costs of their own pollutants which is a collective action problem. In these situations, individual countries have an incentive to use tariffs or not regulate, but when all countries act in this manner, they all end up losing due to the outcome of high tariffs or high pollution (Feenstra, Taylor., 331).
This essay aims to exemplify the role of the WTO in resolving these trade policy decisions that simultaneously impact the environment, as well as its multilateral efforts for solutions on each interest’s side of the issue. Specifically, I look at the implications the WTO has had on environmental policy through evaluating the shrimp- turtle WTO case study and its reaction with non-state actors during the Seattle Round protests. I hope to see how post-Seattle has helped determine the WTO’s plan on multilateral engagement with other organizations and the future of its relationships.