Laws of the World Trade Organization

Laws of the World Trade Organization

Introduction to the study

The World Trade Organization deals with the trade regulations and rules between nations at near-global or global level. It incorporates all the regulations and rules which are necessary to consider during the dealings of trade. There are many ways for understanding the World Trade Organization. This organization liberalizes the trade all across the world. This organization provides a forum to the governments for negotiating their trade agreements. Different governments with diverse backgrounds come together in this organization in order to settle their trade agreements and trade disputes. Thus, World Trade Organization controls the system which encompasses some trade regulations and rules. Every government needs to focus and consider all the defined regulations and rules while dealing with their trade agreements.

Background of the study

There are many principles and rules which are defined by the World Trade Organization. These agreements are complex and lengthy because these principles include legal texts which cover a wide variety of activities. World Trade Organization deals with agriculture, clothing and textile, telecommunications, banking, product safety and industrial standards, government purchases, intellectual property, food sanitation regulations and many other activities. However, the regulations and rules that are incorporated by the WTO provide the basis of multilateral trading system.

Trade without discrimination

According to the rules of WTO, people are treated equally under the agreements of WTO. According to this law, countries are not allowed to discriminate among their trading companions. For instance, if a government is granting some special favor such as lower customs duty rate for one partner then this scheme must be same for all other members of WTO. Thus, obedience to this law leads to provide equity in trade dealings between all of the members of WTO.

National treatment

This law ensures equal treatment between local and foreigner trade dealings in order to provide equality in locally produced and imported goods. These laws must be applied to domestic and foreign services, and to local and foreign trademarks, patents and copyrights. Moreover, WTO encourages the governments to lower their trade barriers. Thus, WTO is focusing to lower custom duties or tariffs on all of the imported goods. Through various negotiations, tariff rates of industrial countries on their industrial goods had reduced gradually to 40 percent. These laws of World Trade Organization are promoting fair competition as well as encouraging economic reform and development.

Globalization and ...