WTO CONFERENCE 2021 CORNELL MODEL UNITED NATIONS
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WTO
CORNELL MODEL UNITED NATIONS
CONFERENCE 2021
Copyright © 2021 by the Cornell Model United Nations Conference
All rights reserved. This document or any portion thereof may not be reproduced
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For more information on CMUNC, use the Contact Us page located at: cmunc.net
2
CMUNC 2021 Secretariat
Secretary-General
Malvika Narayan
Director-General
Bryan Weintraub
Chief of Staff
James “Hamz” Piccirilli
Director of Events
Alexandra Tsalikis
Director of Outreach
Akosa Nwadiogbu
Director of Communications
Annie Rogers
Director of Finance
Daniel Bernstein
Director of Operations
Andrew Landesman
Under-Secretary Generals
Robyn Bardmesser
Avery Bower
John Clancy
Mariana Goldlust
3
From Your Chair
Dear Delegates,
Welcome! My name is Kate Konvitz. I am a freshman in the College of Arts and
Sciences studying the intersection of government, economics, and the Middle
East, and I am ecstatic to be chairing the WTO at CMUNC 2021.
In addition to Model UN, I sing, play tennis, intern for Cornell Hillel, and make a
mean oreo-cookie-brownie skillet. I love to travel and am hoping to intern in
Israel this upcoming summer. Also, feel free to send notes to the chair after
committee sessions with titles of movies that “make you think-” interpret that as
you wish, I am a big movie buff, and am always looking for a new suggestion.
I attended around twenty conferences during my three years as a high school
delegate, and, ultimately, it was these conferences that helped shape me into the
person I am today. I have made countless Model UN friends, many with whom I
still talk to, and I hope you can cultivate similar friendships at CMUNC 2021. At
my first committee session, way back in 2016, I walked to the podium, proudly
representing the Kingdom of Saudi Arabia. I delivered an intense speech in front
of seventy-five strangers, thought I rocked it, and then, the moment I sat back
down, realized I had argued the opposite position than the position that I had
been called on to argue. I fell in love with Model UN at that moment. I may have
made a couple mistakes over the past five years, but it was ultimately these
moments that pushed my boundaries and transformed me into a more
confident, diplomatic, and knowledgeable person. I am so excited to witness
your geniuses this April and watch as you strive to develop comprehensive
solutions to some of the world's most pressing and serious problems.
If you have any questions, comments, or concerns I am your guide! Please, email
me at kak326@cornell.edu. Looking forward to an incredible weekend with you
all!
Best,
Kate Konvitz
4
Introduction to the Committee
The World Trade Organization (WTO) is an agency of the United Nations that
serves as a forum for trade negotiations and opening markets. The goal of the
WTO is to ensure that trade flows smoothly, predictably, and freely. The
organization operates under a system of rules which provides a means for
governments to settle international trade disputes. The WTO has played a major
role in increasing market access across the world and lowering trade barriers for
developing countries; however, its primary purpose is to allow trade to flow as
freely as possible provided there are no severe repercussions. This means in
some circumstances, the WTO supports maintaining these trade barriers such as
for the protection of consumers or to prevent the spread of disease. With each
trade agreement, the WTO seeks to find a balance between maintaining a free
market and assisting developing nations. Overall, the WTO seeks to support
producers, exporters, and importers of goods while ensuring that governments
can meet their social and environmental goals.
Members of the WTO meet for the purpose of drafting, negotiating, and signing
trade agreements that serve as international contracts that frame the “legal
ground rules for international commerce.” They outline the agreed-upon trade
policies and restrictions that signing governments are expected to uphold. This
committee will work towards developing working papers that will serve as trade
agreements regarding the expansion of market access and provide means of
decreasing trade barriers for developing countries.
5Figure 1. This figure demonstrates which nations are members of the WTO as well as
non-member states
Figure 2. This picture depicts the various trading blocs that exist within the WTO.
6Topic I: Ensuring Fair Labor Practices
and Upholding Labor Rights in WTO
Agreements
Background and Overview
The intersection between international trade agreements and labor standards
has been a contentious point of debate among the global community. The effects
of globalization and the expansion of international free trade have created both
positive and negative consequences. One key issue is the “race to the bottom,” or
the reduction of labor conditions in an attempt to lower production costs and
expand trade. This has become especially problematic with the emergence of
developing countries in global markets. To compete in international trade and
keep up with production demands, these countries have often resorted to
reducing labor standards through lowering wages, increasing working hours,
and threatening labor rights. Consequently, other countries have advocated for
the inclusion of labor standards in trade agreements in order to protect workers’
rights and equalize the playing field.
Globalization’s effects and trade issues have prioritized workers’ rights for many
countries. Achieving strong levels of decent work in the globalized economy is
an effort that needs to be facilitated at the international level. However, there
has been much hesitation about including labor standards in trade agreements,
as well as what kinds of standards countries should be held accountable to.
Currently, there are no WTO agreements that include labor standards or fair
labor practices. The growing recognition for the protection of labor rights has
facilitated the inclusion of labor standards in regional and bilateral trade
agreements. One example of this can be seen in a recent trade agreement
between the United States and Jordan. In this trade agreement, the nations
agreed to protect the core ILO labor standards, outlined a dispute resolution
system for labor issues, and actions that can be taken to hold countries
accountable. Examples like this, although not protocol, have become more
common in recent years. The need to balance economic and labor interests has
become even more apparent and will be the main goal of this committee.
7International Labor Organization and Core Labor Standards
The International Labor Organization (ILO) is the primary international
governing body responsible for labor issues and labor standards. The ILO is a
tripartite agency that includes governments, employers, and workers from its 187
member states. Since its creation, the ILO has served as a policy creator and
enforcer in order to promote workers’ rights and human rights. Through its
work, the ILO aims to set labor standards, develop policies, and create programs
that promote decent work for all women and men. The labor standards that the
ILO has set forth through its policies and conventions have become the
internationally accepted labor standards by which member nations are expected
to abide. These standards are also the ones that are often at issue when
considering labor standards in trade agreements.
One of the most important steps that the ILO has taken in order to address
workers’ rights is the creation of the “ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-Up.” This Declaration, which was
adopted in 1998, commits its Member States to respect and promote the
principles in the four categories that the Declaration outlines. The provisions in
the Declaration apply to all Member States regardless of whether they have
signed previous ILO conventions or what their level of economic development
is. The four main categories of fundamental rights for workers are: freedom of
association and the effective recognition of the right to collective bargaining; the
elimination of all forms of forced or compulsory labor; the effective abolition of
child labor; and, the elimination of discrimination in respect of employment and
occupation. Although these are the core labor right outlined in the Declaration,
the ILO has gone to further recognize and emphasize the need to observe
additional rights such as the right to a living wage, humane working hours, a safe
and healthy workplace environment, a recognized employment relationship
with labor and social protection, and the right to organize trade unions and
strike.
Despite the international recognition and acceptance of these core labor
standards, specifically, those found in the ILO Declaration on the Fundamental
Principles and Rights at Work, enforcement of these standards remains a
challenge. The ILO currently has an established supervisory system to help
ensure that countries implement the conventions that they ratify and uphold the
core labor standards. There are two kinds of supervisory mechanisms in place
that include a regular system and a set of special procedures, both of which
supervise the application of ILO policy in law and in practice. Mechanisms
through which nations are held accountable for enforcing and promoting ILO
8labor standards have been one of the key points of the debate on whether these
standards should be included in trade agreements. The WTO, along with many
of its member states, recognize the need to have these standards, but
continuously push back on their inclusion in WTO and other international trade
agreements. Disagreement over enforcement, as well as the implementation of
the standards by nations, has also prohibited the inclusion of labor standards in
international treaties.
History of Labor Standards and WTO Agreements
Since the WTO’s creation 25 years ago, its member states have disagreed as to
how to handle labor issues in their negotiations. Some have even gone so far as
to claim that there is no intersection between trade and labor as a justification
for not incorporating any sort of labor provisions in treaties. Due to the
divergent views about ensuring fair labor practices and incorporating labor
standards in WTO agreements, there are currently no WTO agreements that
discuss labor standards for countries engaged in the treaty.
Even though the consideration of labor issues has not been made explicit in
WTO trade agreements, the WTO has acknowledged the issue and the current
debate surrounding it. The precedent for the point of view of the WTO on labor
standards is rooted in the 1996 Ministerial Conference. At this WTO Conference,
the WTO affirmed its position on labor issues and trade agreements and has
maintained this position since then. In regards to the core labor standards, the
WTO renewed their commitment to the observance of internationally
recognized standards. The Ministerial Declaration recognized the ILO as the
“competent body to set and deal with these standards,” therefore deferring labor
issues to the ILO instead of the WTO. The WTO further stated that they reject
the use of labor standards for protectionist purposes and that the comparative
advantage, particularly of low-wage developing countries, should not be put into
question. The collaboration between the ILO and the WTO was established and
strengthened through the Ministerial Declaration. From 1996 to the present, the
WTO has held that the ILO is the appropriate body to deal with labor and trade
issues.
Developed vs. Developing Countries
The main divergence in opinion about including labor standards in trade
agreements stems from the effects that this has on developing and developed
countries. Some of the main issues that have created tension between the two
groups of countries include child labor, health and safety standards, working
9conditions, wages, the informal and the formal sector, trade unionism, and the
right to strike. The differences in the level of economic development and labor
standards between these countries have left this debate at a standstill as both
sides have not found a means to meet each others’ interests. Since the opening of
international markets and the rise of globalization, global trade has
disproportionately impacted countries that are trading. Even though this has
allowed many economically developing countries to expand their market reach
and improve their economies, more industrialized countries have felt negative
consequences. The level of economic development of a country remains at the
heart of this debate, as including labor standards can dramatically impact
production and economic growth.
Developed countries have been strongly advocating for the inclusion and
implementation of labor standards in WTO trade agreements. Member nations
from the European Union and North America have been some of the biggest
proponents of this issue. One of the key arguments that developed countries
have advanced is that developing countries have a comparative advantage in
trade because they have weak enforcement systems and low labor standards.
Furthermore, these countries typically pay their workers less, which also might
offer them some comparative advantages in trade, compared to developed
countries that can provide higher wages. Proponents of workers’ rights and labor
urge that all trading nations should be held to strict labor standards. These
nations view WTO agreements that include labor standards as a mechanism in
which countries can be held accountable for labor violations and trade can be
more equalized among countries. More specifically, developed nations have
suggested that this issue be brought up through working groups within the
WTO. They believe that bringing these issues to the forefront of the WTO will
incentivize member governments to improve working conditions for workers
around the world.
Developing countries, on the other hand, have been opposed to and hesitant of
mandating labor standards in WTO trade agreements. Given that many of these
nations are still industrializing, their level of labor standards and conditions for
workers have not been able to meet those of more industrialized countries.
These countries typically have offered lower wages, poorer working conditions,
and have subjected workers to other unfair labor practices. However, this is
primarily due to weak enforcement systems, coupled with the need to maintain
competitiveness among already industrialized nations. Labor standards have
been perceived as being costly and as hindering economic development.
Officials in developing countries have argued that the level of working
conditions and labor rights that are expected will arise through natural
10economic growth, such as what happened with industrialized countries.
Furthermore, these nations see any actions taken against them because of their
lower labor standards as measures that would further perpetuate poverty and
delay improvements. Fundamentally, these nations are not confident in their
ability to meet ILO or labor standards in trade agreements if they were to be
imposed. Because of this, industrializing nations have strongly urged against
including these standards, and instead have supported adopting different
standards that would find a balance between allowing them to remain
competitive in international trade and provide workers with better rights.
Current WTO Stance on Trade Agreements and the Inclusion of Labor
Standards
The debate on the inclusion of labor standards and ensuring fair labor practices
through WTO trade agreements is still one of the most pressing international
debates. The rise of globalization has allowed for international trade to flourish
in many aspects, especially through opening market access and economic
development. Despite this, many negative consequences have come from
globalization, many of which have disproportionately affected labor issues and
workers’ rights. Workers’ rights are constantly placed in jeopardy, creating
issues of precarious labor situations and overall working conditions that violate
these individual’s rights. Although awareness about these problems has
increased, international organizations are still unsure of how to improve and
ensure guaranteed labor rights to workers, especially when international trade is
heavily involved. The WTO continues to maintain its original position that the
ILO is the competent body to deal with labor issues, not the WTO. This stance
has in some ways further perpetuated this issue as the onus on the impact of
trade on labor rights has been diminished. It is the goal of this committee to try
to resolve differences between the interests in developed and developing
countries in the adoption and implementation of these labor standards in trade
agreements, and to best find ways in which workers’ rights and lives can be
protected.
11Topic II: Increasing Market Access
and Decreasing Barriers for
Developing Countries
Background and Overview
The WTO consists of 164 members and 23 observer nations that represent 98% of
world trade. Over three-quarters of these nations are developing or
industrializing countries in transition to market economies. The WTO is
currently working to provide benefits to less-developed nations by giving them
more time to adjust to the WTO provisions and greater flexibility in their
transition period. Additionally, the WTO dispute settlement system benefits
smaller nations with its decisions based on rules rather than economic power.
This is intended to help developing nations reach equal footing with more
developed ones in international trade, however, some nations are starting to
abuse this power by frequently initiating disputes in efforts to take down the
nations who have deep trade relationships in all sectors of goods and services.
The dispute settlement system is a mechanism in which these international
agreements are enforced, offering security and predictability to the multilateral
trading system. The procedure includes consultations and a panel that receives
written and oral reports of the issue. This panel interprets the rules of the WTO
and develops a conclusion to the dispute. When the WTO develops a resolution,
trade sanctions are placed on nations that do not comply with the terms of the
settlement within a reasonable time period.
The general imbalances between developed and developing nations cause many
of the disputes that require the described process above. Wealthier nations are
reluctant to trade with developing nations based on every nation’s natural
tendency to want to dominate the market and reduce competition. As a result,
developing nations face many trade barriers including tariffs, import bans, or
quotas that restrict quantities. The trade barriers create three major hurdles that
block market access from emerging nations: specific tariffs, falling commodity
prices, and non-tariff barriers.
Specific Tariffs: Tariffs are taxes on imported goods and in some cases exported
goods. The main problem with tariffs today is that extensive specific tariffs are
targeting developing nations. These tariffs are implemented based on quantity
as opposed to value. Many tariffs are still levied as a percentage of a product’s
12total value but some are tariffs on certain types of goods, most notably,
agricultural products. During the Uruguay Round Agreements, the WTO
members agreed to move toward quotas (quantitative restrictions) on
agricultural products. However, this results in discrimination against low-
income countries whose main exports are primarily agricultural goods. A major
problem with this is that these specific tariffs are not transparent because they
are linked to quantity. This means that if prices drop, the specific tariffs remain
unchanged and market access consequently decreases.
Falling Commodity Prices: Commodity prices have tanked and once again it is
the developing nations that witness the resulting rise in protectionism. Besides
petrol, most commodities are at relatively low levels which is problematic
alongside the specific tariffs.
Non-Tariff Barriers: Finally, there has been a growth in non-tariff barriers that
are particularly harmful to the less developed nations. These often come in the
form of export quality standards such as animal health, food safety, and
environmental standards. These factors will be discussed further in greater
detail later in the background guide.
Doha Development Agenda
The latest round of trade negotiations between the members of the WTO
occurred in 2001 with the Doha Development Agenda. This agreement
addressed the issues of market access, WTO rules, and trade facilitation by
introducing lower trade barriers and revising the WTO trade rules.
Governments of involved nations agreed to be more open and clarify rules on
regulations to increase transparency. Under the negotiations, the members
settled on an a la carte system where “each government has the right to decide
which sectors it wants to open to foreign companies and to what extent,
including any restrictions on foreign ownership.” Both developing and
developed nations had a reason for participating in these negotiations. The
following are some of these motives:
• Developed nations sought new export opportunities in sectors including
financial services, telecoms, energy services, express delivery and
distribution services.
• Developing nations sought new opportunities in sectors including
tourism, medical services, and professional services.
• Both developed and developing nations sought clearer rules on domestic
regulations.
13Now, about 20 years later, nations in the WTO are again seeking reform as the
global economy has drastically changed since the Doha Development Agenda.
The policies established in this agreement are in need of an update to fit modern
trade relationships and new barriers that have developed since 2001.
Market Access
In the WTO, market access for goods refers to the “conditions, tariff and non-
tariff measures, agreed by members for the entry of specific goods into their
markets.” Developed countries previously agreed to a 40% cut for tariffs on
industrial products and all tariffs on agricultural products are bound. In a
process called “tariffication,” almost all import restrictions, such as quotas, were
replaced by tariffs which were to be gradually reduced over time. This has made
markets more predictable, especially for agriculture, which contributes to the
WTO’s goals of leveling the playing field for its members. The image shows the
levels of market access as of 2017 by region.
Discrepancies in market access between developing and developed nations
mean that some nations have a significantly large share of the global market.
The top 5 markets include China, United States, Germany, Japan, and South
Korea. The nations with the freest markets include Singapore, Hong Kong, and
the Netherlands.
14Environmental Effects on Market Access
Market access is largely affected by the environmental measures taken by many
countries. The WTO works toward finding the necessary balance between trade
and environmental policy-making. Many nations have strict environmental and
health standards that effectively block many products from being imported.
These standards can be on a wide variety of issues such as animal welfare, pest
control, or water conservation. While these restrictions are well-intentioned,
they put developing countries at a significant disadvantage who are often
incapable of meeting such standards. This will be an important topic to address
in committee. The figure below ranks each country’s level of environmental
protection according to the Environmental Performance Index. The map shows
the correlation between wealth and being eco-friendly with the richer nations
scoring highest.
Effects of Physical Infrastructure on Market Access
The quality of physical infrastructure, such as roads, railways,
telecommunications, financial institutions, and marketing channels, also affects
a nation’s access to the international market. Better infrastructure enables
companies to commit more resources to exporting to international markets and
15in cases such as in Singapore, Dubai, and Hong Kong, the high level of
infrastructure attracts major investments.
Trade Barriers
The reduction of tariffs has increased trade among developed nations, but the
barriers that remain on manufactured goods continue to be an obstacle for
developing nations trying to expand their export of such goods. To protect their
own economies, developed nations limit these imports and consequently hinder
foreign competition. The high non-tariff import barriers on a variety of export
products, such as textiles, have caused the lack of equal trade opportunity that
the WTO seeks to fix. Some of the problems to consider that lead to these trade
barriers include:
• Economic cross retaliation
• Protectionism in agriculture and the food production industries
• Domestic bias in the regulation of restrictive business practices
• Industrialized country limitation of trade among developing countries
• Distortion of international trade as a result of government participation
“If such a trade barrier undermines the export opportunities of the developing
country and is found to be inconsistent with the WTO, its withdrawal may not
occur until two or three years after filing a WTO dispute settlement complaint.”
This can be problematic because the developing nation will suffer from the
barrier until the dispute settlement proceedings are completed. The committee
may want to address this and other such issues with the dispute settlement
practices in the WTO.
Solutions
Since its creation in 1995, the WTO has initiated substantial policies that have
effectively lowered trade barriers. In each category in the graph below, the trade
barrier has steadily decreased since 1998. This data further suggests that more
productivity gains would result from additional reductions in non-tariff
regulatory barriers.
16However, this committee will discuss any possible solutions lowering trade
barriers and increasing market access globally. All practical solutions are
welcomed and delegates are encouraged to work together to develop
comprehensive solutions and policies that the WTO could adopt. The map
below shows that many of the current trade blocs are between nations
geographically near each other, but we encourage you to work together with
delegates from across the world to find solutions that will raise up and benefit
the economies of all nations.
The WTO has not taken much action recently regarding these issues so it is the
goal of this committee to develop a new set of agreements to remedy these
problems. The most recent major reforms concerning market access and trade
barriers were established in the Doha Development agreements in 2001. With
the constant fluctuations in the international market and new trade
relationships between nations, the current policies have become outdated for
modern economics. It will also be important to take the factors such as the
environment and physical infrastructure into consideration when developing
comprehensive solutions that should not discriminate against any under-
developed nation. Most importantly, this committee seeks to find a balance
17between helping increase market access and decreasing trade barriers with
maintaining a relatively free and open market.
18Committee Positions:
Afghanistan - Joined July 2016 Honduras - Joined January 1995
Albania - Joined September 2000 Hungary - Joined January 1995
Angola - Joined November 1996 India - Joined January 1995
Argentina - Joined January 1995 Israel - Joined April 1995
Australia - Joined January 1995 Italy - Joined January 1995
Austria - Joined January 1995 Jamaica - Joined March 1995
Bahrain, Kingdom of - Joined January Japan - Joined January 1995
1995 Jordan - Joined April 2000
Bangladesh - Joined January 1995 Luxembourg - Joined January 1995
Barbados - Joined January 1995 Mexico - Joined January 1995
Belgium - Joined January 1995 Morocco - Joined January 1995
Belize - Joined January 1995 Myanmar - Joined January 1995
Bolivia - Joined September 1995 Nicaragua - Joined September 1995
Bostwana - Joined May 1995 Oman - Joined November 2000
Brazil - Joined January 1995 Pakistan - Joined January 1995
Bulgaria - Joined December 1996 Peru - Joined January 1995
Burundi - Joined July 1995 Philippines - Joined January 1995
Cambodia - Joined July 2008 Portugal - Joined January 1995
Cameroon - Joined December 1995 Qatar - Joined Janurary 1996
Canada - Joined January 1995 The Russian Federation - Joined August
Chad - Joined October 1996 2012
Chile - Joined January 1995 South Africa - Joined January 1995
China - Joined December 2001 Sweden - Joined January 1995
Colombia - Joined April 1995 Switzerland - Joined July 1995
Congo - Joined March 1997 Thailand - Joined January 1995
Costa Rica - Joined January 1995 Tunisia - Joined March 1995
Côte d’lvoire - Joined January 1995 Turkey - Joined March 1995
Croatia - Joined November 2000 Uganda - Joined January 1995
Cuba - Joined April 1995 The United Arab Emirates - Joined April
Cyprus - Joined July 1995 1996
Denmark - Joined January 1995 The United Kingdom - Joined January
The Dominican Republic - Joined March 1995
1995 The United States of America - Joined
Ecuado - Joined January 1996 January 1995
Egypt - Joined june 1995 Uruguay - Joined January 1995
Fiji - Joined January 1996 Venezuela, Bolivarian Republic of -
Finland - Joined January 1995 Joined January 1995
France - Joined January 1995 Viet Nam - Joined Janurary 2007
Germany - Joined January 1995 Yemen - Joined June 2014
Ghana - Joined January 1995 Zimbabwe - Joined March 1995
Greece - Joined January 1995
Guatemala - Joined July 19
19Works Cited
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