The Impact of Wto for Developing Countries

The World Trade Organization (WTO) was established in 1995 to provide a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. (WTO official website)

Among 159 WTO members, 117 members are developing countries or separate customers territories, which most of them are labor intensive and competitive in providing cheap labor force and natural resources. There are lots of advantages to become the member of the WTO, as it stimulates the world trade competition by providing more product choices to the world consumers; promote domestic economic development and generate more employment opportunities. Moreover, it provides a platform for member countries to solve disputes over international trade issues in a constructive and fair manner.

China officially became the 143th WTO member in 2001 after 13 years efforts, and the accession to the WTO has forced China to revise a series of domestic laws and regulations in order to in line with the WTO norms and international practice. According to the WTO latest report, China has jumped from the seventh-largest merchandise trader to the second in 2012 after entering the WTO, only USD 15 billion less from the first spot, the United States. It accounts for 40% of global growth over the past two decades and becomes the world largest exporter and holder of foreign exchange reserves.

However, many voices in the western world accused that WTO is in favor of those developing countries by allowing them access to the global market to learn the sophisticated and advanced skills from the mature industries, and develop their domestic economy via selling cheap and low standard product to the world; which will ultimately harm the world trade environment. David Shambaugh, a US well-known professors of Political Science and International Affairs, argued that "China still has long way to go before it begins to shape the world in its own image" despite it significant economic influence to the world trade environment. In his new book, he criticized the health, environmental and social standards in developing countries are considerably below those of the developed countries, and they can only provide OEM or substandard product that need less technology and innovation. He also pointed out that "93.6% of China's exports are still manufactured low-end product" and lack of knowledge of producing goods in the innovative ways.

Chen Xiaochen, deputy director of the Center for China's International Strategic Studies, addressed that "Shambaugh's cool-headed assessment will make some excited Chinese calm down", but he neglected continues effort that Chinese companies made to compete in the world market and he is "more