Introduction World trade organization

 

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DISCUSSION Introduction World trade organization-law denotes the rules and customs that govern trade between different countries belonging to the World Trade Organization1. The world trade organization was established in 1994 and from since then it has gone on to admit more members including China. This organization is governed by a set of specific laws that are part of the international trade law. This area of law has grown in terms of complexity and volume and, thus making it distinct from the general international economic trading laws2. This law is built upon distinct principles that help to guide trading relations and activities promoting a freer trade that is much fairer and more transparent. International trading law covers different areas including, the regulation of monetary systems, currency control and multiple aspects of international development3. Principles governing the WTO law include trade without discrimination. This principle has two tenets. The first tenet is known in other terms as the Most Favored Nation (MFN) treatment. Under this tenet, all the countries included in this organization commit to treat all their trading partners equally4. This means that if it is in terms of duty or tariffs imposed on member countries, the host country should ensure that they are applied equally among their trading collaborates5. There are, however, exceptions that apply or that can be considered under this principle. This includes the fact that countries can choose to abide only by this principle when dealing with goods that are traded within the WTO. They can, however, exempt goods that are not traded within the WTO. Other exemptions include the fact that countries can choose to open up some of their enclosed markets to developing countries, they may also choose to discriminate other countries in services that the WTO allows countries to discriminate others in6. The second tenet under this principle is the national treatment. This means that once the imported goods have been admitted into the precincts of the host country, they should be treated equal to those products that are locally made7. Freer Trade This principle is meant to encourage trade. This is where trade is deliberately encouraged through the lowering of barriers, dissolution of tariffs and removal of import quotas. This, however, is achieved through structured negotiations that are meant to transform trade agreements by relaxing stiff laws that lower the level of trade activities between countries8. Predictability: Through binding and transparency. This is achieved by member countries making pronouncements that are meant to stabilize trade between member countries. This is done through promises to abide to specific trading decisions such as not raising tariffs or taxes9. Promoting fair competition. Promoting fairness in the trading arena is one of the major objectives of the WTO and the laws that govern it. Fairness can be achieved by wading off unfair competition in the business practices of various businesses. This is done through negotiation or through adhering to the rules set up in the organization. Laws such as the MFN are enacted so that to make a level playing ground where nations can compete fairly in the policies and agreements of the WTO10. Encouraging development and economic reform WTO principles are tailored in a manner that they allow maximum development of countries especially developing countries. This can be done through enacting fair and beneficial agreements of trade11. The following are the most important principles of the WTO: Most favoured-nation treatment principle National treatment principle Transparency principle One can also deduce from the discussion above that these basic principles are important in creating fairness and efficiency in international trade. ________________________________________________________________________________________ 1 Berkley Law University California. (2009, May 13). International Trade Law. 2 United Nations. (2003). WTO Core Principles and Prohibitions: Obligations Relating to Private Practices, National Competition laws and Implications for a Competition Policy Framework. New York: United Nations. 3 WTO. (2012). Introduction to WTO Basic Principles and Rules. Geneva: WTO. 4 Aaronson, S. A., & Abouharb, R. (2013). Is More Trade Always Better? The WTO and Human Rights in Conflict Zones. Journal of World Trade. 5 WTO. (2012). Introduction to WTO Basic Principles and Rules. Geneva: WTO. 6 WTO. (2015). Understanding the WTO (5th ed.). Geneva: WTO. 7 United Nations. (2003). WTO Core Principles and Prohibitions: Obligations Relating to Private Practices, National Competition laws and Implications for a Competition Policy Framework. New York: United Nations. 8 Mitsushita, M. (2004). Basic Principles of the WTO and the Role of competition Policy. Chinese Anti-monopoly Law, 24. 9 WTO. (2011). Overview of WTO Agreements. Geneva: WTO. 10 Baldwin, R. (2016). The World Trade Organization and the Future of Multilateralism. Journal of Economic Perspectives, 95-116. 11 Aaronson, S. A., & Abouharb, R. (2013). Is More Trade Always Better? The WTO and Human Rights in Conflict Zones. Journal of World Trade.

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