The World Trade Organization came into being on January 1st 1995, following the signing of the global free trade agreement GATT in 1994. The WTO's mandate is to remove obstacles to trade, and governments can ask its dispute settlement body to investigate whether another country's legislation might in fact be a trade barrier. WTO decisions are binding, and can be enforced through the implementation of trade sanctions against the disobedient government by all WTO member countries.
The most recent WTO judgement that a consumer protection law acted as a trade barrier concerns the EU's ban on growth hormones in beef -- but many more cases are on the way. Just as the US raises cases on behalf of its corporations, the EU questions US food safety and environmental legislation on behalf of European-based TNCs. The US, the EU and Japan are continuously seeking the expansion of the WTO's mandate, as their industries crave access to the last remaining unprotected sectors of Third World economies. Since 1995, steps have been taken to liberalize telecommunications and financial services. Despite fierce Third World opposition, a WTO investment liberalization treaty is still a high priority for OECD countries, and in for particular the European Union.
This page was installed on 11 February 1998 and last updated on 25 February 1998
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© Corporate Europe Observatory, February 1998
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