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Globalization

Agriculture is a huge business of trade between countries and the EU was trying to protect their countries from beef that was greater than theirs. What the EU was doing was protecting their own markets from the US and Canada in order to make sure that the countries that make up the EU would be able to have an advantage. The EU did not ban beef products only those that were injected with hormones, their reason for this was that they said the beef were not safe. However, this was not true and was unfair. So the US and Canada took the their case to the WTO in order to get the ban lifted and have greater trade with the EU. The WTO ruled in favor of the US and Canada and said that the EU must lift their ban on beef injected with hormones. The EU did not do this and continued to ban. So in order to be a fair judge the WTO allowed the US and Canada to put sanctions on over 80 EU!.
             products. The WTO did make sure the sanctions would not be too much for the EU and came up with how much the sanctions should be. So why would the WTO allow sanctions to happen? Because the EU did not follow the WTO rulings the WTO thought it would be fair to allow these sanctions. If it was not for the WTO the US and Canada might of put greater sanctions up for the EU and thus causing a greater problem for trade. However, the WTO said what the sanctions could be thus causing less damage (Hurd).
             The WTO also realizes the risk of a falling economy. If an economy is going to a recession or a depression then the WTO will allow a country to take certain measures in order to help out their own economy. If a country's economy is falling apart then it could drastically hurt trade. If a country's GNP is weak and that country is importing a lot of low cost imports then this will cause dangerous damage to a country's economy. If people in that country are buying products that are made in other country's or imports then no one will invest money into their own economy.


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