Lesson video

Hi everyone.

And welcome back to this unit of work, exploring the question.

How does a UK still play a meaningful role in the international community? I hope you enjoyed the last two lessons and that you are ready for lesson three today.

Please make sure that you are somewhere quiet and you are ready to learn.

And let's begin with our lesson today.

So kind of today's lesson, you will need your exercise book or some paper.

And if you've joined the previous two lessons, it would be a very good idea to have your notes or kind of user and you need either a backup blue pen and then a different colour pen to self-assess your work.

And so we are going to be looking up some kind of questions today, and we've got four key questions to answer.

We are going to be looking at what is trade? What is the World Trade Organisation and what are its activities? What is the example of the World Trade Organization's work? and how does the UK work with the World Trade Organisation? So lets work, for question number one, okay.

So if we ever going to explore the lesson about the World Trade Organisation.

The best place to probably start is by looking at the concept of trade.

So our first question is, what is trade? So when you hear the word trade kind of, when you see the word trade.

What comes to mind? So you might not pause the video and just take a couple of seconds to have a think, what words, phrases or images come into your mind when you hear or see the word trade.

Well, hopefully you've got some ideas and you get some kind of words are kind of images about trade.

I'm going to share mine with you.

And so when I hear trade, I think goods, I think things that we might buy, things that we have, things that we need all kind of got by trade, I think regulation, okay.

So trade is regulated.

trade has rules, trade has regulations around it, trade isn't something that's easy to do.

I think, things that we buy, things in the shops, things you buy are all kind of all able to do so because of this process of trade.

I think ships, okay.

So you know we trade all over the world.

These goods have to get somewhere so ships goods find in a container.

Money, yeah, so we buy and we sell things and trade involves money.

And then finally we've got HGVs.

So, so trucks, okay.

So if you've ever been in a car and you drove it on the northway.

You do make sure you've seen a truck, okay.

Trucks move goods and we get goods via trades.

Okay, you could have planes.

So 'cause we kind of transport trade by flight.

There are lots of words you could have, and I'm sure you got a lot more.

So then, what actually is trade? How do we define trade? We'll trade in its simplest form.

It's the action of buying and selling goods and services.

Okay, so it's a process where kind of money is exchanged and we get stuff or we might sell stuff, okay.

And there are two types of trade, or there are two main types of trade, Got the idea of a bilateral trade? So trade between countries.

So for that kind of buying that means two, so be traded between two countries.

And then we've got multilateral trade, trade between three or more countries, okay.

So if I was you, I'd probably pause the video now and just make a note of those keywords within your sub notes.

Okay, so I'm sure we've all bought some chocolate bouquet, In our lives, okay.

And chocolate can only be manufactured because of trade, okay.

So if we think of the chocolate brown Cadbury's.

Cadbury is based in the UK, okay.

Things to make chocolate cocoa powder.

You need to be brought in from elsewhere in case so we import that.

So import means to bring stuff in export is to know, sence to find ways we might export.

A cup of my export, that chocolate to different countries, okay.

Maybe be gone on a holiday.

You look and see if you can find a caprice chocolate somewhere.

You might have also seen this picture to do with trade or fair trade, okay.

The fair trade movement.

The fairtrade is really important as well because fairtrade basically means, that the trade is fair is equal, people are not being exploited.

And people are earning a good wage for that profit, so you might've got fair trade chocolate, fair trade tea, you might even have some fair trade clothes to do with the cotton, okay.

'Cause there are a lot of human rights issues to do with the trade network.

So that was having a look at the first question.

What is trade? Then I'm going to look at the second question of what is the World Trade Organisation and what are its activities? So if you are doing GCSE citizenship, this is an organisation on your specification.

And if you're not, you just here to learn and figure out the interest way so, which is great.

So what is the World Trade Organisation? So it's the only international organisation which negotiates and regulates a global trade.

And its main aim is to ensure that trade, so there's buying and selling of goods.

Exchange flow freely and easily around the world, okay.

So there's less, so there are least barriers possible.

And again, I'll probably pause this and add this definition to my notes.

And again, if you are doing this thesis in check, this is a great one.

One more question define what is, define what is meant by the World Trade Organisation.

Nice, simple definition there for you to kind of answer it.

So we're going to carry on looking at this question as 106 for members at the moment.

I'm now including people like the UK, Germany, India, and Ghana.

So it's a global organisation that covers countries across the globe.

Members represent an account for 98% of the world's trade.

So it accounts for a lot of trade in the world and it is a very important organisation.

It was established in 1995, and it's based in Geneva in Switzerland.

If you've ever been or if you are going to hold it, yeah.

I'm sure they do tours kind of go and check out and trade is free of discrimination.

So within the World Trade Organisation, if you have a trade agreement with a country based on the WTO rules, it means that you can't favour another nation over, over someone else, or you have to treat everyone equally, okay.

And this has a special name in the World Trade Organisation.

Those its called the most favoured nation treatment.

It tries to make trade equal and fair for everybody.

So you are going to be asked to do a little task now with some of the key words on this screen.

I guess you might want to pause for a second and just make sure that's all, okay.

And you think, are you going to remember? So, I am going to ask you if you can remember based on what I've just said, to fill in these gaps.

So write the terms and fill in the gaps with the words I just explained.

So pause the video now, and have a go at that task, please.

Okay, so, well then for giving that task again.

If you've got a different colour pen, now the time is get out to self assess your answers.

And, so the trade, the World Trade Organisation has 164 members.

Members represent 98% of the world's trade.

It was established in 1995 and is based in Geneva, Switzerland And the trade is free of discrimination.

So well done, if you've got all those terms. So, this is just a map of some other members of the World Trade Organisation.

So you see the ones in dark green are members, the ones in light green are a member because they are part of the European union.

So that trades or the bloc of a group.

And then now that we want ones are awaiting membership, okay.

So you probably see now why most of 98% of the world's trade, as you know, has some involvement with the WTO because that is a truly global organisation.

So there are a few countries were still awaiting membership.

So what are the main activities of the World Trade Organisation? What do they are, usually do? So one of the things they do, is they reduce barriers to trade.

They want to make trade as easy as it extremely possible.

So one of the things of what they do is they negotiate with countries and call tariffs or costs and try to keep them as low as possible.

The next thing they do, is they set rules.

they make sure trade is good and well, and there are clearly defined things you can and cannot do in the trading environment.

So, like I said before, treating each its nation favourable and helping countries establish trade links.

So they help people get together and discuss trade.

So they hold meetings quite often with trade ambassador, with very important government people with prime ministers and leaders it's to bring countries together to try and help them discuss trade.

They settle trade disputes.

So if people are, in the World Trade Organisation and they have a disagreement, they will come to the World Trade Organisation and they'll say, well, actually they've done this.

No they've done that.

And the World Trade Organisation will hear the case and they will produce a ruling.

And they conduct and publish research about trade, okay.

So they publish an annual report, which outlines some of the trends and patterns of what's been happening in the world about trade.

What can, what kind of emerging barriers or what new rules need to be introduced to trade? So they've been recently doing a lot of work on fishing and rules around fishing.

Okay, so what I'm going to ask you to do is spend a lot more time looking at those main activities.

And what I would like to do is leave the lesson and access the worksheet.

And on the worksheet you will find a list of things about trade organisation does, so examples, okay.

And what you are today is much the example with the activity, okay.

So you can clearly explain the different activities of the World Trade Organisation.

And once you've done that come back to the lesson and we will go through answers.

Okay, so well done, figuring that.

All right, I hope it was okay.

And you could, have uncovered.

if you've got different coloured pen, might be a good idea to get out so you can tick your answers and make any corrections that you need to.

So the activity of the World Trade Organisation is reducing barriers to trade.

And one of the examples of how they do that is they work with members to reduce costs or tariffs associated to trading, making it easier in case of reducing barriers.

It's all about making trade easier.

The second activity they do is they set rules for trade, okay.

So as you can probably imagine traded is very complicated.

And so different things, they trade have different rules, but one of the rules for food is that if you are trading food under a WTO agreement, member countries must follow the highest international standards of safety for the food transportation and all this must be guided by science, okay.

So the latest scientific advice on how to store and transport food, how to get food must all be followed.

So the next one, helping countries to establish trade links.

So they hold specific meetings known as rounds to bring countries together to discuss and develop trade links.

Settling disputes.

So the WTO, has a special department to do this, the called the dispute settlement body.

And they will listen to cases where trade promises have been broken and they will make a ruling on this view and give that verdict.

And in 2019, 23 disputes where settled.

It takes quite a long time for these few works through the different levels of bureaucracy in the WTO and how it takes a long time.

But you know, if we discuss things within this course and this trade it's important that all the different things are looked at.

On the final one is, they conduct and publish research.

So, for example, they can, they publish kind of annual report outlines the work of the WTO and major projects and trends.

So in 2020 they predicted trade will have fallen between 30 and 32% due to the COVID-19 pandemic.

So it tries to educate people about trade.

So our next topic, our next question then is to look at a specific example of what the World Trade Organisation does.

So you can join the World Trade Organisation wherever you are around the world.

But they do have special rules for developing countries.

Okay, so if a country applies to join the World Trade Organisation as a developing country, and their membership it's approved, they are then given a certain number of rights, or entitlements and these rights are meant to help, help you trade effectively.

So it's hoped that membership will make it easier.

And will encourage trade links to be established, for example, they might have special tariffs.

Trade is recognised by economists and development experts, as a means to improvement and support a country's growth.

So development is all about change in a country, okay.

And if you want to enact change, you probably going to need some money.

And trade is one of the ways that time economists say is a good way.

And there are a number of developing countries within the World Trade Organisation, including places like Cambodia, Cha, Tanzania, and Bhutan.

We're going to have a little look at Cambodia, okay.

So you can see the map, right? You can see where Cambodia is it's painted red.

And we're going to look at as a developing country, how has Cambodia benefited from the World Trade Organisation membership? So what I'm going to ask you to do is answer this question for me.

Using information in source C and your wider knowledge, explain two benefits of membership of the World Trade Organisation for Cambodia.

So you are going to be given a source and this is on the worksheet.

So in a minute, I'm going to ask you to leave that with the lesson.

I want you to read the source really carefully.

You probably want to read it twice, and you're going to consider what I'm actually asking you to do in the question, Okay, you're not just copy in the source, okay.

I know what the source says, I put the source there.

Okay, you need to add, develop and demonstrate your understanding of what you know about the World Trade Organisation so far.

Think about what we've already talked about.

Think about that, kind of what we've discussed of the WTO.

Think of what you've learned from every work in your table.

You've just done.

Use, and you can use this following sentence artists to help structure your answer, 'cause sometimes it's a bit tricky to get going.

So one benefit is this means that a second benefit is this means that, okay, This means that it's a great sentence is a great phrase for any subject to show that you are adding development.

Okay, so kind of please do remember that one.

And how you get a mark ranging at one mark for basic point and one mark for how you develop it.

So you need to do it twice.

So read the lesson, go to the worksheet, read the source, answer the question, watch out again, come back and we'll go through it and hopefully you'll get four out of four.

So welcome back, I hope that was okay for you, okay.

So I will just talk it through, how I would have approached this question and what I would have done.

So I would have first, if I have the ability to, I would have highlighted the key ideas in the source.

So Cambodia will gain access to a global market.

That's a good point maybe to, to bank in our heads.

The garment industry has become a significant part of the Cambodian economy.

It is estimated it employs more than 200,000 workers, and indirectly contributes to the livelihood of more than a million in rural areas.

The WTO suggests that 70% of garment exports have gone to the United States, and if Cambodia were not a member of the WTO, the United States might have imposed higher tariffs.

So another really important point.

The garment manufacturer association of Cambodia was very active in pushing Cambodia to become a member because they claim that working conditions at garment factories will improve, and the world will begin to notice Cambodia as a source of socially account will become accountable consumption.

, okay.

So they are the key points I picked out, maybe you got something different, that's absolutely fine, 'cause there were lots and now its quite rich, rich sauce, okay.

So I'm just going to share some concepts that I wrote and maybe you guys have similar and you can use these as a guide to mark yours.

So one benefit is access to global markets.

So that issue of basic point.

If you've got something like that, that is one mark.

And then we're going to develop that.

So this means that Cambodia will be able to trade with new countries and these links can be established at the regular WTO 'Rounds'-meetings, okay.

So you're using, but what we did in our last activity, 10 hunch or knowledge of this situation, okay.

Again, a second benefit is a reduction in tariffs or fees.

Again, that's your basic point.

For example, when trading garments with the USA.

This means that Cambodia will be able to earn more money from the trade, and this could be spent within the country to help improve infrastructure, roads, education, hospitality, et cetera.

So one mark for your basic point, one mark for you developing, okay.

So fingers crossed, you've got four out of four.

I'm giving you another point just to see how to do it.

You only needed to.

And a third benefit is improved working conditions for workers, okay.

And this means that as the WTO impose rules on working, workers will be safe and Cambodia will improve its global reputation for ethical consumers and this will attract more customers.

But it's becoming increasingly popular to only buy ethical things, okay.

So I'm sure you've seen that, news and things about fast fashion and how it's damaging the environment and how workers are being treated fairly and fairly in some places, this impact consumption consumer habits, et cetera.

Now so ask questions about are quite tricky.

So don't worry, everything got thrown out for okay.

But it's a skill to really work is a skill which is really worth developing.

So please do speak to a teacher about how best to answer them and keep giving them a go, okay.

So we going to look at our third question.

I'm going to look at how does the UK work with the World Trade Organisation? So the UK has been a member of World Trade Organisations since 1995.

And before that it was a member of the predecessor of the WTO.

So the UK has been committed to global trade for quite a long time now.

In contributions budget, so in 2020, this was around 6 million pounds.

Quite, quite a big amount.

The UK will send a representative.

So it will send the secretary of state, the person in charge of international trade to the WTO ministerial conference, which takes place every two years.

And the UK already uses the WTO to trade with some countries.

So India, Brazil and China at the moment.

So as we can say, the UK is committed to global trading, wants to build trading relationships around the world.

Trade is really important to the UK.

So you might have seen around the news.

So, time when this, I know December 2020.

So apparently you're watching it, Hello.

And as this is being filmed, we're currently trying to negotiate a kind of agreement for leaving the European union, okay.

And there's lots of speculation about what's going to happen, when we leave, especially around future trade agreements, okay.

Especially if the UK leaves the EU with what's called a 'no deal'.

So there's no trade agreement in place.

And the phrase trade on the WTO rules has been used a lot in the media and by a lot of politicians, okay.

So it's probably worth understanding what that actually means.

So simply if you trade under WTO rules, it will mean trade between the UK and the EU, and then possibly all the countries, were not quite sure yet.

Which will be regulate by the WTO rules, okay.

As there will be no separate trade agreement between the UK and EU.

So all the trade will have to comply with what the WTO says in case of the tariffs barriers.

The thing is you can trade the things you can't trade.

So that's all set by the WTO, not between the UK and the EU as a whole.

So basically what does this mean and well? It could mean a lot of things, okay? Like I say, we don't, we are, we are quit sure yet, okay.

It would lose the benefit of a free trade agreement, okay.

So that basically means trade to move around freely.

There available barriers is once it's been chat, once it can kind of go across different countries that might have to stop, okay.

So more petition imports and exports.

So things we get in and out we'll face tariffs and checks, okay.

This we'll make trade along there, okay.

And you might have seen on the news, the ques on some of the motorways.

And tariffs so these are charges on imports and exports.

And when the ideal, these will apply to imports and exports to inform the EU currently, don't other very low level.

If we get a no deal, then kind of, then they will apply checks, okay.

So items being important and export are going to have to be booked at more and this could mean trade is slower.

So there might be delays and it's got to make additional paperwork having to be completed.

Both of these changes could mean the iTunes become more expensive to buy in the UK and from people abroad to buy from the UK.

So it could potentially probably block trading from us.

And we then we'll have to look at the deals we do as well.

So it's a big thing.

Like I all expect to be waiting for the news of a trade deal.

So based on what I've just said, I would want you to pause the video now and answer these five questions, okay.

I want you to have to go answering the five questions comeback and I will talk you through the answers.

Good luck, okay.

So well done for giving that task again.

If you've got your different coloured pen, maybe get that out now so we can go through the answers.

So the answer to this one is UK became a member of the WTO in 1995.

So give that a tick if you got that right and correct it if you need to.

But what is one way the UK benefits from WTO or memberships? So you could have had a variety of reasons here, but hopefully you've got one of the following.

A good answer would be, it can trade with lots of different countries.

An even better answer would be that the UK has access to a global market.

This means that the UK can diversify its economy and introduce products, catering with different needs and tastes.

So you just use a new yellow copy of it.

It looks a bit more kind of in a sophisticated manner, but either one is good.

So well done.

Okay, so answer to number three.

What is one commitment the UK must make as part of its WTO membership? So good answered would include things like the UK contributes to the WTO's budget.

Or the UK attends the WTO meetings.

Both true, both very valid.

However, an even better answer would be the UK must contribute to the annual WTO budget in 2020, this was roughly 6 million pounds.

Or the UK wants to attend the annual ministerial conference every.

This is typically attended by the secretary of state responsible for trade, okay.

So typically ancestors and share if you can add an example that always will make it better, okay.

An example, linked to the point you make him always make things better because it makes the person meeting on, "okay, this person knows what's happening in the world." Okay, next question.

What does it mean to trade under WTO rules? Well, good answer would be trade is carved out under the goal set by the WTO.

Absolutely fine.

However, a better answer would be that kind of WTO rules mean a country must follow the rules and procedures set other WTO.

Countries who trade by the rules do not have to have individual separate trade agreements as all traded overseen by the WTO, okay.

So the WTO rules look after the trade in relationship of the countries.

And the final question, why might the WTO become important in the UK's post-Brexit trading? A good answer would be that the WTO will be important because it will help the UK trade when it exists from the EU.

Or an even better one would be that the WTO could become very important, kind of came for UK post post-Brexit trading relationship with the EU if the UK does not which deal, because like I said, we don't actually know yet.

Trade must be then governed by WTO tariffs and checks, potentially making trademark expensive and slower.

So well done for giving all those answers there.

I'm sure you've got them right.

And hopefully you added some new ideas as well, okay.

So that brings us to an end for today.

I hope you enjoyed it.

And you, weren't some new pieces that mentioned about the World Trade Organisation.

And hopefully it's specifically, you can now define what trade is and you can give it to different forms so bilateral and multilateral.

You can give a definition of the World Trade Organisation and state its activities.

So is the only global organisation what's kind of able to trade and you know it works to reduce barriers, et cetera, disputes, publish research, et cetera.

You can describe how the WTO works with a specific country so like Cambodia.

So, you know, the WTO has made working safe from Cambodia.

It's made trade easier.

It's made Cambodia trade with countries so the USA, and that's quite common for a lot of countries that are the WTO works with.

And finally, you can explain how the WTO works with the UK and specifically how it might work with the UK in a post-Brexit world.

So well done for all your hard work and thank you very much.

Okay, so well done for all your hard work again, please make sure that you can read pre-exit quiz on, on the wire.

And I hope to see you again, next time for next lesson.

Kind of have a good day, bye.