Global Trade Regime

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Global Trade Regime

Introduction

The benefits and importance of global trade are acknowledged, recognized known and profoundly documented. With the increase in global competition, there is growing emphasis on the quality of

products and services having low prices. Now, goods and services produced in any part of the world can be easily accessed and make use of by the consumers. In the third world countries where the labor cost is cheap as compared to developed nations, they are provided the opportunity to come on parallel grounds through labor-intensive work. Once the third world or the poor nations gain efficiency, their power to purchase goods and services from other countries of the world will increase.

A worldwide trade program can be mostly non-supportive, or it can be recognized by considerable efforts at worldwide collaboration. International collaboration in trade issues can be implied or it can take the form of precise global trade deals. In the post-World-War-II era, the global trade program has been recognized by considerable and continual attempts to work over trade issues at a multilateral level through non-reflex but precise worldwide business deals. The GATT and now the WTO has in effect offered as the structure of the post-war globally company system.

The World Trade Organization and its forerunner, The General Agreement on Tariffs and Trade have been substantially effective over the last 50 years at decreasing tariff and other trade limitations among a rising number of nations. The forerunner to the WTO started in 1947 with only 23 members; these days it has 146 associates, composed approximately 97 % of world trade.

In view of the fact that global trade contracts are agreed by government authorities willingly, they must provide the opportunity of offering good profits to all partners. In a multilateral organization where all the government authorities can take part, this probability can only happen if there are no inefficiencies in these agreements, this means that if everyone is to get a larger item of the “pie,” then the pie should be improved in terms of its size. The function of the trade contracts is then to decrease or remove the inefficiencies and distribute the profits between the participating nations. Hence, a number of questions arise at this point that whether such trade agreements are that much effective that all participants could be benefited from such free trade idea or benefits for one nation could be only driven at the cost of other.

Discussion

The WTO offers the general institutional structure for performance of business interaction among its associates in issues relevant to the deals discussed during the Uruguay Circular. It screens and manages, through its various systems, the execution, function and management of the various legal agreements. It also manages the trade policy evaluation procedure and the dispute settlement procedure. Moreover, the WTO offers the message board for further discussions between its Associates, in issues treated under the agreements and also more generally concerning their multilateral business relations.

Functions of WTO

Execution, management and operation of the covered trade ...