the world trade system how it works and what’s wrong with it

This briefing by Friends of the Earth International examines the theories, institutions, and impacts of the global trade system, arguing that its core principles are fundamentally flawed and prioritize economic growth and corporate interests over environmental sustainability, social equity, and human development.

• The global trade system is based on flawed principles that prioritize growth and consumption as ends in themselves, ignoring the depletion of natural capital and the negative impacts of increased transport on biodiversity and local communities.
• The theory of comparative advantage, a cornerstone of free trade, is considered obsolete because it assumes capital is immobile, whereas in the modern globalized economy, capital moves rapidly to wherever production costs are lowest.
• Trade liberalization has increased global inequality, benefiting developed nations (the 'Quad': US, EU, Canada, and Japan) and transnational corporations while marginalizing poor countries and subsistence farmers.
• The World Trade Organization (WTO) is criticized as being undemocratic, untransparent, and unaccountable, with powerful nations wielding disproportionate influence over the agenda and limited access for civil society.
• WTO rules often conflict with national and international environmental and health protections, frequently treating such regulations as barriers to trade and limiting the application of the precautionary principle.
• The TRIPs Agreement allows transnational corporations to claim traditional plant varieties as inventions, leading to 'biopiracy' and preventing farmers from saving seeds, which threatens food security for approximately 1.4 billion people.
• Transnational corporations (TNCs) exert immense influence over trade policy through lobby groups and advisory committees, contributing to a 'race to the bottom' where governments lower labor and environmental standards to attract investment.
• Export-led development strategies promoted by the IMF and World Bank often force poor countries into a cycle of primary commodity dependence, leading to environmental degradation and high poverty rates in mineral-exporting nations.

APA

Friends of the Earth International (2003). the world trade system how it works and what’s wrong with it. https://www.foei.org/wp-content/uploads/2020/12/worldtradesystem.pdf

Chicago

Friends of the Earth International. the world trade system how it works and what’s wrong with it. 2003. https://www.foei.org/wp-content/uploads/2020/12/worldtradesystem.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=the world trade system how it works and what’s wrong with it |date=August 2003 |url=https://www.foei.org/wp-content/uploads/2020/12/worldtradesystem.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternational2003world, author = {{Friends of the Earth International}}, title = {{the world trade system how it works and what’s wrong with it}}, institution = {Friends of the Earth International}, year = {2003}, month = aug, url = {https://www.foei.org/wp-content/uploads/2020/12/worldtradesystem.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }