Committee: WTO Chair: Alexander Gonzales Co-chair: Carlos Moreno

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1 Committee: WTO Chair: Alexander Gonzales Co-chair: Carlos Moreno Hello Delegates, my name is Alexander Gonzalez Vera and this year I will be your chair for the WTO or, The World Trade Organization. I hope this year any CancunMUN veterans will be happy to have me and further progress their experience as a delegate, and that any new or first time delegates have the opportunity to learn and become quite the successful debater. I personally enjoy going out with my friends, play sports such as soccer and I also enjoy reading books. I want to study laws or public accounting and I want to go to a good school in Mexico City and want to end up living in Cancun with a happy family. I was born in Merida and later moved to Cancun when I was around two months old. This is my first time participating as part of the ias team in CancunMUN and I hope that it will be a pleasurable and enjoyable experience not only for me, but for you delegates as well. Hopefully these few paragraphs have helped anyone reading this get to know me better and get more comfortable with me as part as the CancunMun team. I hope to see all of you prepared both physically and mentally when the time comes around to start debating. Please do not hesitate to send me an if you have any questions pertaining to this years debate. I can t wait to see all of you delegates in action! I wish you luck and of you have any question please contact me. alexgonzalezvera@gmail.com

2 Topic 1 The WTO should pass the Trans-Pacific Partnership (TPP)? In 2005 the countries of Brunei, Chile, New Zealand, and Singapore (P4) agreed to the Trans- Pacific Strategic Economic Partnership Agreement. The initial agreement was meant to change the tariffs in goods and trades. Later, in 2008 the country of United States of America said that it was their intention to be involved with the P4. After USA joined the agreement the P4 became the Trans-Pacific Partnership. The Trans-Pacific Partnership is a trade agreement between countries from the Asia-Pacific region. The main goal of the Trans-Pacific Partnership is to develop new trade agreements and increase the economy of the countries involved. Since 2008 more countries have expressed their intention to join. Countries such as Australia, Peru, Vietnam, Mexico, Canada, Japan, and Malaysia are now on board. In the presidential term of Barack Obama the United States has publicly supported the agreement. Around 40% of the World s GDP is involved in the agreement. The agreement is said to be for a free trade market between countries, but most of the countries already have free trade agreements. For example United States have a free trade agreement with most of the countries involved in the TPP except for New Zealand, Brunei, Malaysia and Vietnam. So why do these countries need another agreement?

3 US The United States is promoting this partnership but it is not supported by all the american people. Politicians such as the Senator Warren have doubts about the agreements. As it was stated before US already have a free trade agreement with most of the countries. If United States already have all these agreements it doesn't need more? It is criticized that it is a way to have influential power over other countries through international companies. Senator Warren said the TPP will not benefit the american businesses because the middle class will see its businesses bankrupt with the incorporation of the big businesses. Also if the companies come in into the country they can sew the country to lower the minimum wage and by that killing the middle class. In other words the TPP will not only kill the small businesses but also the biggest buyer which is the middle class. Mexico Mexico also has free trade agreements. The NAFTA was signed during the presidential term of Carlos Salinas de Gortari. This is the only agreement that Mexico has with the countries involved and only United States and Canada participate in the NAFTA. The biggest problem for Mexico is

4 that it is going to be the second country that gives more taxes away. Mexico has a 7.8% of taxes for foreign products. With the TPP Mexico will charge nothing for the other eleven countries products. Mexico hasn't had the best results with NAFTA, this means that the TPP will have results like it did in NAFTA. When NAFTA was implemented its exports were lower than its imports and made a deficit for the country. Although Mexico has increased its exports in oil. Now Mexico has benefited from NAFTA and it has been recognized that the businesses are growing. The analysts have said that it is a long term deal for Mexico. Canada For Canada it has been a dilemma because in recent years a US pharmaceutical company sued the government of Canada because the price racing patents were not legit the company. The company ended demanding 500 million dollars to the Canadian government. The TPP allows companies to sue governments which is what happened in Canada. Another major issue is that Canada has strict environmental rules and the TPP may affect or alter this situation because it allows corporations to use the resources necessary to accomplish their business. Vietnam Vietnam is the country that will have to drop its taxes more than any other partner. Vietnam has a 9.5% tax on foreign products. The undeveloped industry may never develop with the introduction of transnational companies to the country. With a lower minimum wage Vietnam may be benefited with the new jobs that may be created if a company starts its industry in the country. Chile In Chile the government has allowed the TPP subject to be debated in public. Chile has a free trade agreement with United States and the chilean ex president Sebastian Piñera said el mayor acuerdo regional de comercio libre en el mundo may be the TPP. Chile strongly supports the agreements but asks for more flexibility in the restrictions. New Zealand New Zealand is trying to increases its exports in milk and other farming products. In exchange the country is willing to give a cheaper medicine program. New Zealand intention is to expand

5 their dairy business through all the countries that are in the agreement. It is said that medicine will be unaffordable in New Zealand. Controversies The Trans-Pacific Partnership has held many controversies since its creation. The TPP threatens the sovereignty of countries. It is said that it will affect in the internet freedom, the costs in medicine, food safety standards, and environmental protection. Also the TPP has been criticized for being a secret agreement between countries. Politicians have argumented that they don't know what they are signing. One of the biggest problems is that the governments have said that the agreement has maintained the deal in secret because if not it will affect the process, but the transnational companies already have the information with details. The normal citizen does not have the information but a big company has it? The agreement has been negotiated since 2008 and until 2012 a draft of the TTP was released. With ISDS (Investor-State Dispute Settlement) a company can sew a foreign country and the demand will not go to the legal system of the accused, it will go through an arbitral tribunal. This means that the demand will be regulated by public international law. Many criticize that the agreement has a tendency of free trade and that may affect the countries with undeveloped economies. Also the agreement tends to give power to transnational companies over countries. The transnational companies can sew a country for violating the agreement rules and it may force the country to take all the restrictions that it has against the product of the private company. With the ISDS the private companies can get benefits in foreign countries and can affect the stability or the economy of the countries. The senator Warren from the United States said about the Trans-Pacific Partnership A French company sewed Egypt because it raised its minimum wage this type of actions wont allowed the growth of the workers section. Questions Is it the best option to pass the TPP? Why does countries like USA are involved in this agreement if they have agreements with most of the countries in the TPP? Is it going to be better for developed economies or for undeveloped? Isn't the TPP violating the sovereignty of the countries by giving more power to companies?

6 Is this agreement going to kill the production of a certain product in some countries? Such as the dairy business in the United States? Why isn't China in the agreement if they are part of the Pacific? Is this an excuse for United States to defeat China in the pacific exports? Why are the negotiations so secret? What are the leaders hiding from the citizens? Sources "Trans-Pacific Partnership Agreement." Electronic Frontier Foundation. N.p., n.d. Web. 29 Aug "TPP: What Is It and Why Does It Matter?" BBC. BBC, n.d. Web. 30 Aug <http%3a%2f%2fwww.bbc.com%2fnews%2fbusiness >. O' Marah, Kevin. "Elizabeth Warren On TPP: Bad For Business." Forbes. N.p., 22 May Web. 30 Aug <http%3a%2f%2fwww.forbes.com%2fsites%2fkevinomarah%2f2015%2f05%2f22%2feliz abeth-warren-on-the-tpp-bad-for-business%2f>.

7 Dear Delegates, Welcome to the annual Cancun MUN 2016! My name is Carlos Moreno de la Torre, and I will be the Co-Chair of the World Trade Organization committee. I am currently a Senior at the International American School of Cancun. After graduating from high school I plan to study laws or marketing in Mexico City or Puebla. When I am not studying I enjoy doing a vast number of activities such as going to the gym, playing soccer and american football. I am aiming to get a sports scholarship by playing american football or even an academic scholarship. I also enjoy passing my time at the beach with friends and family, since it is so close I feel very fortunate.. In the past years I have been part of other Cancun MUN conferences. My first time in Cancun MUN was in 2014, I participated as a delegate for the General Assembly representing Portugal. Last year, I had the pleasure of being part of the UNICEF committee, representing the Russian Federation. It has been an unforgettable experience and I enjoyed being a part of the UN simulation. This year I wanted to strive for more, so as this is my last year, I decided to participate as a member of the MUN team, becoming a Co-Chair has been a great pleasure. I wish you all the best of luck and hope you have a great experience this conference.

8 Topic 2 Trade as a tool to aide LDC The global economy depends heavily on trade. One of the most important performances the World Trade Organization plays is helping developing countries participate in the global market. Many countries have not developed the capacity to participate in the global Market, the World Trade Organization made it a task to assist these countries through world trade. Currently there are 48 countries known as least developed countries (LDCs). These are: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, the Gambia, Guinea, Guinea- Bissau, Haiti, Kiribati, Lao People s Democratic Republic, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Myanmar, Nepal, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Sudan, Timor-Leste, Togo, Tuvalu, Uganda, United Republic of Tanzania, Vanuatu, Yemen and Zambia. Developing countries do not have the opportunity to participate fully in the global trading system. This being the reason why the World Trade Organization (WTO) helps this developing countries to achieve a greater progress in their development. Creating a better living standards and lessen poverty. There are developing countries which do trade successfully and slowly achieve a better economy, but there are those countries where trade is just failing, therefore contributing to poverty growth. Only 3 countries have managed to graduate out of LDC status: Botswana in 1994, Cape Verde in 2007, and the Maldives in 2011.

9 The main goal of the World Trade Organization is to provide help to those developing countries through their delegates, instruct them on how to achieve organization in their country to obtain a much better trade capacity. The teaching of such knowledge has vastly facilitated the participation of developing country trade officials in World Trade Organization activities.

10 For the Least Developed Countries the UN is trying to increase awareness regarding the needs of the such countries. The main goal of the WTO is to raise the Least developed Countries out of the LDC category by Many World Trade Organization activities involve cooperation of international organizations in order to be truly effective. Angola Angola has been a part of the LDC list since The government of Angola has requested the UNCTAD for a National Training and Capacity building workshop. It is Important for Angola to Invest in energy and power distribution as a step to building a better economy and to diversify their trade. Measures being taken by Angola are two projects currently being undertaken. The first one is construction of a liquified natural gas plant and the second one is a refinery. Afghanistan Life expectancy has dropped from 44.5 years in 2003 to 43.1 years in The NHDR has ranked Afghanistan as the poorest country in Asia, with a gross domestic product (GDP) per capita of US$964. Suggested Countries to be represented: United States Russia Afghanistan Angola Mozambique Burkina Faso Mexico Brazil India Madagascar France

11 Germany Madagascar Niger Japan Questions to take in consideration: What Countries are involved in the LDC list? What can developed countries do to help the LDC? What barriers are involved? What plans are being conducted currently? How can trade help the LDC? What trade capacity can LDC take in? What countries have come out of the LDC list? What organizations are help LDC? Sources: Odi.org,. 'Publications Overseas Development Institute (ODI)'. N.p., Web. 30 Aug Unctad.org,. 'Unctad.Org Home'. N.p., Web. 30 Aug Data.worldbank.org,. 'Least Developed Countries: UN Classification Data'. N.p., Web. 30 Aug