WTO Caucus

Today in class we're doing a WTO Caucus session, so I am representing the RNC, and this is my platform on the issues at stake:

Good Afternoon, I am here to represent the RNC in this conference, and these are my positions

Resolution 1: We are not opposed to free trade of automobiles due to manufacturing plants owned by Toyota, BMW and a number of other foreign companies in the United States. Competition from foreign car manufacturers has led to greater consumer choice and a rise in the quality of automobiles in the United States. Furthermore, lifting of barriers on automobiles will also allow for US automobile companies, namely Ford and GM, the ability to compete in the global market, helping American businesses and workers. Regarding free trade of agricultural goods, the RNC does not currently support this proposal, due to concerns over what would be brought into the US, along with the potential to hurt US farmers. Therefore, we can agree on point 1, but not on the second point.

Resolution 2: We do not take issue with the proposal of non-tariff barriers on automobiles and financial services, however NTB’s in regards to agriculture are unacceptable, due to the negative economic impact this would have on American farmers, and the fact it would undermine US farmers. While we would like to move towards free trade in the near future, we cannot come to an agreement at this time over the removal of NTB barriers for farming.

Resolution 3: We do not have an opinion on resolution 3, and the status of GMO products being banned from NTB’s is not a priority for the RNC. This question, in the US, should be left to the FDA and state governments to determine the status of GMO products.

Resolution 4: Regarding subsidies, again we have an issue with lifting restrictions on agriculture products from outside the United States. Furthermore, given the current struggles facing US farmers, we cannot allow them to be exposed to the global market. Furthermore, given the complexity of various agricultural subsidies, their removal is virtually impossible. Also, it would be political suicide for both Republican and Democratic politicians, especially in rural areas, so any farm bill removing subsidies would be immediately voted down. Therefore, the RNC cannot endorse any proposal to remove agricultural subsidies, both as a matter of policy and political reality.

Resolution 5: The RNC supports the proposal of allowing for the free flow of capital investment across borders. This would help to integrate markets further, leading to increased global cooperation and trade. With the prevalence of multinational corporations and financial institutions only increasing, it is logical to work to connect these institutions through the market, and expand trade and commerce even more, benefitting all involved.

Resolution 6: The stability of the United States dollar is one of the most important pillars in the world economy. The dollar is traded on the market today, and its value compared to other currencies is determined by the market. The RNC does not object to the dollar being in free float on the market, however the United States has to reserve the rights to set its own monetary and fiscal policies and the ability to revalue the dollar when necessary.

Resolution 7: Trade has benefitted the US and its economy. The flows of goods, services and ideas both in and out of the United States has led to America’s economic prosperity. We do wish to commit ourselves to the expansion of free trade by 2020, however. Two potential deals outside of the WTO which would help expand trade are the Trans-Pacific Partnership and the US-EU free trade deal. Therefore, the RNC is committed to advocating for free-trade agreements and the increase in worldwide trade both inside and outside of the WTO. 

Russian Economic Issues

Today, the Russian ruble's value plummeted, losing nearly 9% of its value before rallying. At the end of the day, the ruble lost 'only' 4% of its value. While President Vladimir Putin has been enjoying widespread popularity in Russia due to the war in Ukraine, economic troubles in Russia could spell trouble for his regime. The ruble had already taken a hit due to recent economic sanctions following the war imposed by the EU and United States, taking the side of the Ukrainian government in the conflict. However, the ruble's troubles are not due to the war, but instead because of the recent drop in oil prices. Russia is one of the world's largest oil exporters (#2) and the value of a barrel of crude oil has significantly dropped in the last year. Russia's economy is heavily dependent on fossil fuel revenues, so the ruble's value has fallen due to the economic uncertainty surrounding global oil prices. A lot of this has to do with new technology used to extract shale oil and tar sands in the US and Canada, which have led to a large increase in oil supply, and cut the dependence of the US on foreign oil supplies. Also, OPEC (Russia, Canada and the US are not members) has not decreased its production of oil, which contributes even more to the high supply of oil in the global market. In the US, this has also caused gas prices to drop in recent months, but it has adversely affected many resource-rich countries, and is a good example of the resource curse and the over-reliance on fossil fuels in the economies of many nations.