Jacqueline Turk #4 – U.S and E.U Seem to Have Their Own Interests in Mind Whilst Proposing “Remanufacturing” to the WTO

The World Trade Organization (WTO) is a place where member governments try to sort out the trade problems they face with each other. The major purpose of this organization is to settle trade disputes, and facilitate trade to flow as freely as possible between countries. There are 153 countries included in this organization, as of July 2008. The WTO prides itself on being run by its member governments and decisions are normally taken by consensus. Though the WTO attempts to liberalize trade, it can be a difficult process reaching an agreement between members.
Last month the leaders of the developing world, the U.S and E.U, introduced the concept of “remanufacturing” to the WTO. Remanufacturing is the term that is that describes the process in which a recovered good is transformed by repairing, rebuilding, or refurbishing, into a product that is “as good as new.” This concept could be extremely beneficial to large developed countries, like the U.S, however it does not take the interest of smaller, less developed countries into consideration. Large countries are proposing this concept in an attempt to cut costs of production, but still profit from import duties.
This proposal had many counterarguments from other WTO members, specifically India. India rebutted the concept, stating that there are drawbacks in the definition of remanufacturing. Another interesting point that was mentioned was that cars are recycled about every three years in developed countries. The remanufacturing of cars will provide a market, in less developed countries, where these cars could be dumped after they are used and disposed of. The automobile industry would see the largest ramifications if this concept goes into effect. Remanufactured cars would have a competitive advantage, as they would be 40-45% times cheaper then new ones. Another consideration is who will certify these products that are “like new.” It appears that the U.S and E.U are proposing the idea of remanufacturing to the WTO for their own benefits, not in an attempt to sustain free trade. This idea would take advantage of smaller, less developed countries, while cutting costs and increasing profits for larger ones. The U.S and E.U should consider what is best for trading between all countries in the WTO, not only themselves, because the “as good as new” mentality seems flawed.
Keywords: U.S, E.U, WTO, remanufacturing
Source: http://www.financialexpress.com/news/us-eu-want-wto-tariffs-for-remanufactured-goods/732218/0

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