Freeing Trade Barriers in Asia Chairs: Mohammadou Gningue

Freeing Trade Barriers in Asia Chairs: Mohammadou Gningue

SciMUNC 2018 World Trade Organization Topic: Freeing Trade Barriers in Asia ​ Chairs: Mohammadou Gningue ([email protected]) Alysa Chen ([email protected]) Dear Delegates, Welcome to the Bronx High School of Science Model United Nations Conference (SciMUNC) 2018! We’re so excited to have you join us as delegations at the World Trade Organization at SciMUNC this year. My name is Mohammadou Gningue, and I’m elated to be serving as co-chair for this committee. I’ll be working closely with my co-chair, Alysa Chen, as well as your rapporteur Maliha Akter to make sure that this committee runs as smoothly as possible. I’m currently a senior at The Bronx High School of Science and have been participating in MUN since I was a sophomore and this is my second year chairing a committee. I’m really excited to be working with you all and hope that we have a very successful conference. I hope for the very best out of you all and for another wonderful SciMUNC! Hi, I’m your Co-Chair Alysa Chen. I’m a rising senior and I’ve been a part of Bronx Science Model UN Team for one year. This is my first time chairing a conference. What truly inspires me to continue enjoying MUN is working with people from all over the world. Outside of MUN, I am a huge environmental activist. My dream is to work for the UN Environmental Programme or practice environmental law in the ICJ one day! Hi, my name is Maliha Akter and I am Rapporteur. I am a rising senior and I have been a part of the Bronx Science Model UN team for a year. I look forward to hearing each delegate’s proposition to resolve the issue. We highly recommend that you refer to the official UN website for additional references or to the National Model United Nations website for guidelines and rules if it is your first time partaking in any committee. If there are any questions or concerns, feel free to email Mohammadou Gningue or Alysa Chen at [email protected] or [email protected] or contact the Bronx High School of Science MUN team through faculty advisor Diane Steiker at [email protected]. Sincerely, Mohammadou Gningue, Co-Chair of World Health Organization Alysa Chen, Co-Chair of World Health Organization 1 Committee Description: The World Trade Organization (WTO) is an integral global organization that presides over international trade. This important and powerful committee was founded in 1995 in Geneva, Switzerland as a result of trade negotiations known as the Uruguay Round. The WTO is tasked on maintaining integral and important trade rules that govern the global trading network, as multiple governments can negotiate multiple trade deals to create a fairer trading sphere. There are multiple ways in which the WTO manages the negotiations regarding trade. Previously, the WTO used the “Doha Development Agenda”, a set of rules instilled in 2001. Its goal was to reform the international trading system through instilling lower trade barriers and opening new markets. The Doha Round talks involved over 20 aspects of trade, as negotiations take place in the Trade Negotiations Committee and other negotiating groups. The specific goal of the Doha Round of trade talks was to establish a cohesive and expansive trade agreement. However, the goal of establishing the agreement by 2005 ultimately failed, due to the lack of support shown by the United States and Europe regarding agricultural subsidies. This ambitious round of talks strived to aid the development of trade in developing nations, specifically reducing subsidies to import agriculture from places such as Europe and the United States. As of now, the 2 WTO operates in multiple bodies, such as the “Dispute Settlement Body”, where governments can air their grievances regarding trade disputes. In many WTO bodies, governments may be accused of “dumping”, the practice in which a country exports goods at a decreased price compared to the price of making the good itself. This practice helps the country gain an enormous profit, however it restricts free trade and can often harm the trading ability of developing nations. The World Trade Organization also possesses numerous abilities regarding trade. The WTO is the place where markets can be opened through negotiations, maintain trade barriers, and overall provide legal frameworks regarding global trade. The WTO has the ability to levy sanctions against nations if they are found to be engaging in dumping or violating WTO agreements. The WTO has produced many agreements since the failed Doha talks. For example, the Trans-Pacific Partnership was created in the WTO, which involves the 11 countries around the Pacific Ocean, and previously the United States. Another trade agreement is the Transatlantic Trade and Investment Partnership, which is a developing agreement between the United States and European Union. Although the agreement promises enormous benefits to both nations, the terms of the agreement have not been settled. One such function of the World Trade Organization is to deal with trade negotiations on a global scale. In the Doha Round, members negotiate regarding tariffs, legal trade barriers, and more. In many negotiations, the members debate WTO Trade Agreements, which involve 1) Goods 2) Services 3) Intellectual property. These three prongs are essential to all trade agreements that take place in WTO committees, as the WTO aims to lower tariffs between 3 nations and keep free and open markets. To add on, another function of the WTO is to aid the development of markets in developing countries. The WTO strives to allocate resources and efforts to develop such intricate markets by increasing their trading capacity, resolve disputes, and implement standards imposed by the committee. This goal allows the WTO to work with other organizations to develop the necessary infrastructure for a market to flourish. The WTO also works with other organizations, such as the United Nations and other international organizations to enhance the effectiveness and awareness of ongoing WTO agreements and negotiations. Introduction A trade barrier is a general term that describes any government policy or regulation that ​ ​ restricts international trade. The barriers can take many forms, including: Import duties, import licenses, export licenses, import quotas, tariff, and subsidies. Most tangible trade barriers work on the same principle: the enforcement of some sort of cost on trade that raises the price of the traded products. Other (intangible) trade barriers exist, such as, differences in culture, customs, and traditions. If at least two nations repeatedly use trade barriers against each other, then a trade war results. Hypothetically, free trade involves the removal of all such barriers, with the ​ ​ exception of those considered necessary for health or national security. Examples of free trade agreements and organizations include the North American Free Trade Agreement (NAFTA), South Asia Free Trade Agreement (SAFTA), European Free Trade Association, the European Union (EU), and the Union of South American Nations. Despite the existence of such agreements, countries that heavily promote free trade subsidize certain industries, such as 4 agriculture and steel. Asia is a vast continent that contains numerous trade barriers both within and outside of the region. For example, as one of the most populous nations in Asia, China plays a major role in the regional trade. Although, China itself is an industrious nation, it has kept a grasp on industries from neighboring countries. But its relationship with foreign countries residing outside of Asia remains tumultuous. It is expected for each delegate to work with one another to generate potential solutions regarding the removal of trade barriers. Background/History of the Problem The official trade relationship between the United States and China has existed for nearly two centuries. It is a complex system of fluctuating dependencies that has led China to become the United States’ most influential and troubled trading partner. Trade relations between the two superpowers have historically been scarred by unequal treaties, a treaty which massively ​ ​ benefits one signatory country over the other. Prior to 1842, U.S. trade with China was restricted to individualized relations between American and Chinese corporations and merchants, with tea accounting for over 80% of U.S. imports from China. The treaty of Nanjing, ratified after the First Opium War in 1842 gave Britain a strong upper-hand in East Asian trade; China ceded the territory of Hong Kong to Britain, expanded Britain’s permitted trade locations, and ensured proper compensation to Britain for any trade losses. Fearing Britain’s dominance in trade, the U.S. decided to establish 5 official diplomatic relations with China under the Treaty of Wangxia. The treaty ensured the United States the same trade benefits that Great Britain had attained two years earlier. As a result of economic hardship faced by the Chinese under British dominance, the United States continued to experience mass immigration from China. While China’s migrant population was highly beneficial for the U.S economy due to their low labor costs and participation in the completion of the Transcontinental Railroad, Chinese workers eventually became scapegoats for the financial crisis, or ‘Panic’ of 1873. Americans became increasingly hostile towards Chinese immigrants and which led to the Chinese Exclusion Act in 1882. The act banned new Chinese emigrants from entering the country. The Act was harmful to both the U.S. economy and the Chinese population due to the loss of a highly efficient industrial labor force. This law was continuously renewed until 1943, when it was repealed and replaced with an immigration quota of 105 visas per year. Trade between China and the U.S. from the 1850s to the 1890s remained stagnant as the United States shifted its focus to European nations that were more welcoming to American goods.

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