Example research essay topic: Health Care System Tariffs And Trade - 1,760 words

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Noam Chomp sky once said: People dont know whats happening, and they dont even know that they dont know. (Matter, 1998, p. 5) These are very harsh words but they do provide insight about how much the general population of countries involved with globalization knows about the issues that are dominating humanitarian groups around the world. Free trade one of the most controversial issues surrounding globalization has been getting the most attention lately as many treaties are being discussed. Because most of the negotiations for these treaties are being done behind closed doors and the countries negotiating them do not want their discussions to be made public most of the general population has been kept unknowledgeable about the implications of the trade agreements currently being discussed. Because the issues surrounding these treaties are immense, discussion of the issues need to be analyzed through different perspectives. Various International Relations theories come in play when talking about these issues but arguments will be analyzed through the liberal IR theory and institutionalism. Through time, trade between people and nations have become more important as economic specialization enables greater productivity.

This leads nations and countries to better produce certain goods and trade with nations that are more efficient at producing other goods. With the advent of the industrial revolution and the mass production of goods, trading became ever more important as increasingly large amounts of goods could be produced in the same area and be exported elsewhere for consumption. In the early days of international exchange, high tariffs and small quotas resulted in the inefficient use of resources. After WWI and WWII with the creation of the League of Nations and latter the United Nations, many international organizations were formed and it is in this period that early forms of the GATT (General Agreement on Tariffs and Trade) were signed. These led the way to regulating trade by lowering tariffs and trade barriers (Irwin, 1995, pp. 6). These treaties lead governments in the international arena to other discussions about restricting governments from using protectionist policies to limit trade.

These new discussions that have been going on for the latter part of the 20 th centaury are starting to limit the roles that governments and nations have in trade and business inside their country. With the advent of free trade being pressed by various internal non-governmental organizations and international institutions the political sovereignty of Nation-States is in jeopardy. Through the twentieth centaury international relations became ever more important as means of communications and transportation became quicker and more efficient. Through this progression, trade of massive amounts of goods between countries became a reality. This meant that norms and regulations would have to be established by countries to control this trade. As the world got closer to the 21 st centaury the growing loss of the sovereignty of nations grew more rapidly.

First with GATT, which was policed by the international institution the ITO, and cut tariffs and trade barriers limiting the degree that governments can protect their economies. In the latter parts of the 20 th centaury the ITO was replaced by the WTO, which has an even larger and better-enforced mandate. This progression was also moved to regional trade agreements such as NAFTA and the European Union. Through various organizations and treaties governments are seeing their economic decision-making power decrease, at the profit of corporations. This loss of decision-making power is being seen on different scales in different parts of the world. For example economic integration of Countries in the European-Union has lead many nations to forfeit the domestic control of their economy.

The more widespread impacts of clauses in the MAI treaty would have caused a devastating blow to the sovereignty of participating nations. Also the advent of international organizations such as the IMF has caused countries to give up part of their sovereignty. The European Union has been a logical movement in the shrinking global village and has been touted as the only way for European countries to have a credible influence in international discussions. The countries that have joined the EU, although because of their economic similarities the integration has been successful, have lost much of their sovereignty and economic independence. First, the loss of sovereignty of countries in the EU have to be looked at differently than the loss of sovereignty caused by signing an international treaty because of the democratic nature of the EU.

The EU though is a great modern example of how the integration of member countries has lost in great parts their sovereignty on economic policy. Through monetary amalgamation countries in the EU lost even more economic sovereignty as the High Commission of the EU now dictated many economic policies. Because there have been no major crises since the unification of currencies one cannot say if this has been positive but come the time a crisis countries may demand more economic independence. Second of all because of intensive trade many international organizations were created to protect foreign economies and interests abroad.

One of these organizations has been the International Monetary Fund. The purpose of the IMF is to give and loan billions of dollars to economies where a severe economic problem has occurred that threatens foreign investments. They also loan money to third world countries if these countries implement certain economic policies imposed by the IMF. When they give loans to trouble countries these loans are not string free. The countries have to implement economic policies that IMF dictates to them.

For example, a country that could fall to a crisis might be dictated to cut their spending by the IMF and use sounder economic policy that would promote foreign investment. To cut spending governments might need to cut social programs vital for the citizens of the country but of which corporations do not care about. The decreasing sovereignty of countries caused by international institutions and the agreements that countries have signed have been shown but the effects that will be seen inside individual countries also have to be examined. The effects inside these countries will cause interest groups to put pressure on the government to act and using liberal theory we will examine what causes this decreasing sovereignty that many interest groups despise. Although the negotiations for the MAI treaty have been stalled because of negative public opinion, the clauses and regulations of this treaty can be analyzed to see the direction and effect that future trade pacts will contain. Created as an extension of GATT not only to promote but to protect foreign investment, by considering possible the change of rulers in various countries, many clauses in the MAI treaty restrict the power of government on issues such as subsidies (health care in Canada), human and labor rights, and environmental policy.

In the MAI treaty there are clauses that would cause irreparable loss in the sovereignty of not only national level governments but of local ones like provincial and municipal levels of governments. Good examples of this are the clauses that affect subsidies. When dealing with international trade and very low or no tariffs, equal competition among industries in different has to be the norm. For example if a business in Canada is heavily subsidies by the government then this business would have an advantage over a same American company competing in a barrier less trade pact. This is why clauses in trade agreements try to limit government subsidies. Under the MAI, though, while trying to eliminate subsidies altogether, the governmental subsidies that affect the Canadian universal health care system would be deemed illegal because they disadvantage foreign companies from competing in the areas of health care.

If Canada had signed the now defunct MAI treaty grants to the health care system would have been restricted and foreign and local companies would have been able to compete with the government. This would have created what we call a two-tier system, which means that free health care is of much lower quality, and that those with money get much better treatment than the poor. Other areas of subsidies that would be made in part illegal by clauses in the MAI would have included social subsidies such as native grants and some educational funding and protectionism. Secondly the MAI treaty affects human and labor rights limiting the role and power of decision of governments. This means that democratically elected governments would have little or no power in dealing with issues regarding labor and human rights. A good example of the restrictions imposed on governments regarding their implications with human rights are sanctions that government impose on countries involved in human rights violation.

For example the sanctions imposed on South Africa in the 1980 s during the end of Apartheid movement would be illegal under the MAI treaty. Another example of the limitations that would be imposed on governments would be their right to change labor laws. For example if a company establishes itself in a country like Mexico where labor is relatively cheap, the Mexican government would have much trouble trying to improve its labor laws. This is because many companies could go to an established international trade court where a provision keeps all but the final ruling secret.

They would have had the power to block certain laws passed by the legislature and award damages to corporations to be paid by governments. Thirdly the MAI would restrict governments power on environmental policies. The foremost example of this for Canadians is the clause that would enable corporations to exploit any saleable natural resource (Water, lumber, fisheries) with no obligation to sustain them or use them in the interest of the country they are doing business in. This means that the government would have no power to regulate corporation from clear cutting forests or exporting large amounts of Canadian water.

Under the MAI agreement corporations would have the power to sue governments for damages over laws that they consider unfair trading practices such as laws on emissions or pollution. This case would be decided behind closed doors and would not be decided on Canadian laws. The implications of trade agreements such as the MAI treaty will cause the loss of sovereignty of Nation-States causing the decline in decision-making power of democratically elected governments. This problem has been examined through institutionalism and liberal theory and has been shown to be a realistic problem for future generations of young men and woman that will live the earth. The big question to ask with all this is: will the race be to the top or to the bottom? 33 e

Research essay sample on Health Care System Tariffs And Trade