Trade Agreement

In recent decades, international trade and interdependence between economies of different nations have grown extensively. The exchange of goods and services between countries and capital flows increased more during the decade of the nineties than in the decade Previous and more during the first decade of the century. This increase occurs at the same time that rouse formalization of trade relations at the multilateral level in World Trade Organization (WTO), whose membership has reached 150 countries, and the proliferation of regional trade agreements (ACR). At the same time, these agreements have become a dynamic element of the global trading system and also are one of the most controversial international economic contexts, as well as an important element of innovation legal in most countries (Jacob pp. 315).

In addition to the emergence of RTAs, the reasons for the expansion of world trade are groups. Emphasize technological factors that have involved a significant drop in the cost (financial, time and risk) of transport and communications. Also excel phenomena cultural and organizational; including changing the internal structures of many companies, the model mostly used by large companies (and many small) in the world West has gone from being a strictly national approach to multinational operations. Furthermore, in recent years have seen initiatives unilateral trade liberalization in many countries, massive national efforts to attract investment and strengthen export competitiveness. In other words, there are other reasons, apart from international agreements, which explain the dramatic growth of international trade. It is quite possible that trade agreements are formal quantitatively less important causal factor, yet, are certainly relevant decisions politically controversial(Yeats pp. 46).

The number of RTAs has increased steadily since early 1990. Until December 2008, 421 RTAs were notified to WTO, of which 230 were still in force. According to WTO, when added to existing RTAs have been notified, those who have not yet signed and are in force, under negotiation and those found in the proposal stage, the number of RTAs in force by 2010 could exceed 400. Of these, the ACR and the partial agreements represent over 90% and customs unions, 10% (ibid)

Current Issues / Challenges

Unfair trade laws are a problem for international trade and trade relations because they introduce a regulatory barrier to imports on the basis of bureaucratic pricing and injury rules and procedural requirements. Although the WTO recognizes such laws as legitimate trade policy devices, many trade policy analysts maintain that their technical criteria and administrative procedures systematically favor domestic producers wherever they are used, including the United States, Canada, and Mexico, as well as in Australia, New Zealand, China, the European Union, and other countries (Jeffrey pp. 474). Several other recent economic studies have also been severely critical of unfair trade laws, on the basis of the view that such laws, particularly AD laws, have betrayed their original purpose of protecting domestic markets from anti-competitive behavior and have been manipulated to achieve protectionist ends. Import-competing interests typically hold the contrary view, arguing that unfair trade laws are essential as a means ...