It is very common for countries to engage in trade disputes against such practices. These disputes are referred to the World Trade Organization (WTO) resolution .
Developing countries, such as India, Brazil, Argentina, and some African and Asian nations, lose an important part of their productive advantages (land availability, modernization, and productivity) because of the overprotective policy pursued by developed countries.
In addition to imposing a series of customs and non-tariff barriers, such as sanitary and labor, on agricultural commodities from poor countries, rich countries offer many subsidies to their producers, such as the minimum price policy, which gives them important advantages.
With the expansion of world trade after World War II, the need arose for the creation of a global body with the objective of observing the commercial relations between countries, in situations of possible loss for one of those involved, and, if necessary , to interfere in these relations.
Thus, in 1947, it created the General Agreement on Tariffs and Trade , known by the acronym GATT – General Agreement on Tariffs and Trade . The Gatt had among its basic principles, intended to reduce trade barriers and the reduction of tariffs between countries.
Throughout its existence, the GATT has conducted a series of negotiation ” rounds ” aimed at leveraging world trade by reducing tariffs and seeking greater equality in trade relations between nations. Examples of these rounds are: Geneva (1947), Tokyo (1973-1979), Uruguay (1986-1995) and Doha (2001 to present).
In 1995, the GATT was replaced by the World Trade Organization (WTO) in English World Trade Organization (WTO), which currently has (2017) in its command the Brazilian Roberto Azevêdo.
Objectives of the WTO
The WTO, as well as its predecessor, has sought mechanisms to stimulate and control world trade, but has faced serious difficulties in managing inequalities between countries because of the different level of development they present and the disparity of value added in goods of export.
The WTO stands out in the search for agreements and resolution of trade disputes in general, in which the countries of the poor South claim that the nations of the rich North protect their markets from agricultural commodity exports , or from the subsidies given to their producers, or by the heavy import taxes applied.
Brazil, for example, has been involved in many trade disputes, where it has been difficult to enter our products (sugar, meat, cotton) in rich countries such as Europe and the United States. Even very poor countries such as Burkina Faso and Chad, both in Africa, have an active voice in the agency and fight for their rights to fairer trade.