International Tax Law

For those of you that don't know. The World Trade Organization also known as the WTO makes final decisions concerning international tax laws and cases. They are a global organization that oversees trade and rules of nations all over the world. If there are any trade disputes or concerns between any nations then the WTO will be the deciding factor. How does this affect you? If your country makes a law that is deemed to be unfair or unjust then the WTO can take actions to mandate change.

For example, the United States decides that items that are being imported from another country are simply too low and would decrease the sale of the same item manufactured in America creates an import tax. They don't want loss sale for the American product. They would affect their tax income and might even cause a loss of jobs. However, the WTO tells the United States that they cannot incorporate this new tax levy on goods and has now put sanctions in place to get it to comply. You say that this cannot happen. The WTO cannot tell the U.S. what it can or cannot do. Only the American people have that right. That is not so. They can and have done so many times in the past. America has rules that cause a U.S. business to be taxed by every country that it does business. But European companies do not have this same rule. Why are American companies taxed at a higher rate?

Imports, exports, manufactures of goods and services, and underlying business that support them are affected by trade agreements conducted by foreign governments and international businesses. Most of the time they have indicated they cannot raise the price of goods. As the U.S. doesn't want to end up looking like the bad guy they are complying to these changes. But in order for that to happen Congress has to make the necessary changes in American law. They simply cannot be changed at will.

Who makes up the WTO? There are 153 countries that are members since the WTO's creation in 1995. Each country is a member that gets to vote. In order to be a member you must first apply and advise on your country's trade agreements and economic policies. These must be made known. There is always safety in numbers. No one wants to be left out to fend for themselves.