TRADE LIBERALIZATION

Trade Liberalization

Multilateral Trade Liberalisation

Introduction

World Trade Organization

The World Trade Organization commenced in 1995, succeeding the General Agreement on Tariffs and Trade (GATT) as the primary international trade organization. Nearly all world trade—about 95 percent of it—occurs between member nations of the WTO, of which there are 153 full members and 30 observers (many of whom seek future membership). Similar to the GATT, the WTO conducts its negotiations in rounds, moving trade liberalization forward from the previous round (at least in theory) while addressing concerns that have come up and adapting policies in response to new issues and the expanding membership (Goldstein & Judith, 2001, p. 219-48).

The GATT was primarily concerned with tariffs—the taxes levied by countries on products imported from foreign nations—which were the main barrier to international trade and which had often been used to promote weaker (or more expensive) domestic products at the expense of superior (or cheaper) foreign products (Abbott & Kenneth, 1989, p. 335-411).

Trade Liberalization

There are two general approaches to trade liberalization. Multilateral trade liberalization is carried out by the 152 countries that belong to the World Trade Organization (WTO) through negotiation and private judicial proceedings aimed at resolving trade disputes. Multilateral agreements in the context of the WTO are based on the requirement that member countries treat all other members in the same fashion. In contrast, regional and bilateral agreements, the other approach to trade liberalization, are discriminatory. NAFTA is a regional trade agreement in which lower trade barriers are extended by each member only to the other members, each of which is free to pursue whatever trade policies it wishes with nonmembers. More ambitious regional agreements such as the European Union (EU) require harmonization of trade policies by the members as well as other measures to free up the movement of capital and labour (Abbott, Kenneth, Snidal, 2001, pp. p. 37-72).

In the aftermath, of WWII has created the GATT signed October 30, 1947 and the agreement was originally intended to be temporary (executive agreement) and the objective was to establish trade. The negotiations will fail because of opposition from the America.

This cycle ("round") began with the declaration of Punta offloading 20 September 1986 and negotiations were long, and a crucial decision is adopted April 12, 1989 in Montreal concerning the improvement of rules, and procedures for resolving disputes. What is most important in an IO is its dispute settlement system. Depending on the competence of OI will have a system for resolving disputes? The WTO has a dispute resolution system that is quasi-judicial (Abbott, Kenneth, Snidal, 2000, p. 421-56).

On April 15, 1994 in Marrakech are signed WTO agreements establishing the WTO? This agreement will institute an IO who enjoys the PJ and the legal capacity under Article 8. The big news of the WTO lies in its judicial body that Member States may apply in case of controversy or claim to other States for breach of standards in force. The rules on dispute settlement system are listed in a memorandum of agreement ...