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Do We Really Know That the Wto Increases Trade?

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The World Trade Organization is an organization 159 governments and 29 observer governments, formed in 1995 to supervise the liberalization of trade between its member nations through bilateral and/or unilateral trade agreements; rules and regulations agreed upon through consensus; the formulation of committees to oversee trade of goods, services, intellectual property, and formation of trade agreements as well as to settle trade disputes through contract and arbitration. The WTO itself asserts that it and its predecessor, the General Agreement on Tariffs and Trade, has contributed to the 16 fold increase in world trade volume since the post WW2 era. Criticisms have been leveled against the WTO from non-governmental organizations, watchdog groups, and government officials from developing nations. Some claim WTO committee membership is too exclusive and centered around wealthy nations. Others criticize the WTO for allowing rich countries to keep high subsidies and import tariffs on agriculture while negotiating for newer and developing member nations to open their agriculture markets. Furthermore, still more critics claim the WTO ignores issues of labor rights and environmental protection due to its bias toward large corporations as some say is evident in the WTO's stance on intellectual property and blocking of the generic versions of pharmaceuticals to be traded in developing nations. This article attempts to estimate the effect of the WTO on international trade by comparing the bilateral trade flows of 175 countries over fifty years. The two data sets are taken from standard sources such as the International Monetary Fund, CIA, and WTO to name a few. The equation used is a standard formula used by the North American Free Trade Agreement and the WTO to evaluate the effectiveness of bilateral trade agreements: Two countries are represented by "i" and "j",

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