The Principles of Trading SystemEssay Preview: The Principles of Trading SystemReport this essayThe World trade organisation is so complex but there are in place the principles guiding the coordination of international trade and the multilateral trade agreements among trading nations. The principles are simplified as follows:
Trade without discriminationWithin the framework of the World Trade Organisation is the rule that no single nation should be given a special treatment except such treatment is applicable to other member countries of the WTO. Good imported from one country cannot be discriminated against the ones from another country. Domestic and foreign good should therefore be treated equally in the same market. This principle is in two folds: The first is the treatment of a trading country as the Most-favored-nation (MFN). According to Hoekman & Kostecki, 2009, “the most favoured nation implies that WTO members must extend any advantage immediately and unconditionally to all WTO members”. This means that goods coming from different countries into the same national market will not be discriminated against one another. The second fold is the National treatment which means that the foreign goods coming into a country will equally be treated as the local goods in the country.
In Article 2, paragraph 2, if a country in whose markets the national goods come are excluded from WTO competition and if a country in whose market the national goods come are still excluded from the competition of members of a WTO, then an order that excluded them from competition can be made against those countries. On the other hand, the order could be made against any country in whose markets the National goods come would therefore be excluded from trade, or other markets. If you don’t need to mention those, please refer to Section 2a of the WTO Framework. It explains how to enforce a WTO order if you cannot meet a clear and specific condition:
When a bilateral agreement between a country and each other has the requirement that those countries in which it is legally possible to trade agree to allow for the use of the WTO to participate in the competitive process.
In particular if the country that negotiated the bilateral agreement that the MFN was excluded from competition agreed not to participate in the competition, that agreement should, at the time of signing, not require the other or their counterpart to agree to allow for their participation. The agreement must also be binding or not binding.
Note that a bilateral agreement is one that has no obligation to provide an opportunity to countries wishing to participate in an agreement and should be respected. As mentioned in Article 2, paragraph 2, it’s essential to be able to agree to the use of the WTO to provide the means for nationalization and harmonization. And Article 3 suggests the need to explain how the use of international agreements can lead to a de facto agreement.
2. How to enforce a WTO order?
In order to comply with this clause you should:
路 Don’t use the WTO as a means of negotiating a bilateral agreement between the two sides of a bilateral trade dispute.
路 Don’t provide your representative with any data or other documents that may be relevant and relevant to a possible future WTO dispute.
路 Don’t make any representations to the MFN that you intend to provide them.
In general, you should:
路 Inform your representatives about this clause within one year of your request for information.
路 Allow them to do this for four years but you must give the company the original request.
3. Is there a minimum requirement to apply for the trade agreement?
The standard mechanism for collecting information on the validity of a trade agreement is the World Trade Organisation (WTO).
However, the WTO only provides information to members of its Members (see the WTO Member States Guide in Appendix A for details) and does not establish a statutory minimum of seven years from the date of making the request until it has been legally agreed to. Therefore, your representatives are not required in their job to comply with this standard requirement to provide specific data (as they have not been provided data for the trade agreement). Thus the idea behind the WTO’s policy may be that it will provide a minimum time period that it would have to take to enforce a WTO decision but not if there is a new requirement to comply that comes before it.
There are numerous possible requirements under WTO procedure:
路 They should be based on a specific point to be made in the WTO.
路 They should go under a specific category in the WTO’s Decision Review Process.
路 They should comply with rules on WTO law.
4. Does the ‘standard mechanism’ mean that there will be no ‘fair and equitable’ process, or (as is commonly claimed) that this will be necessary in any future negotiation?
No. Trade negotiation is made not only by making agreements but also by drawing up the WTO Disputes Settlement (DSS) and MFN rules and negotiating treaties.
5. Does the WTO’s ‘expertise, policy and management’ clause mean that a single WTO member member is obliged to provide
In Article 2, paragraph 2, if a country in whose markets the national goods come are excluded from WTO competition and if a country in whose market the national goods come are still excluded from the competition of members of a WTO, then an order that excluded them from competition can be made against those countries. On the other hand, the order could be made against any country in whose markets the National goods come would therefore be excluded from trade, or other markets. If you don’t need to mention those, please refer to Section 2a of the WTO Framework. It explains how to enforce a WTO order if you cannot meet a clear and specific condition:
When a bilateral agreement between a country and each other has the requirement that those countries in which it is legally possible to trade agree to allow for the use of the WTO to participate in the competitive process.
In particular if the country that negotiated the bilateral agreement that the MFN was excluded from competition agreed not to participate in the competition, that agreement should, at the time of signing, not require the other or their counterpart to agree to allow for their participation. The agreement must also be binding or not binding.
Note that a bilateral agreement is one that has no obligation to provide an opportunity to countries wishing to participate in an agreement and should be respected. As mentioned in Article 2, paragraph 2, it’s essential to be able to agree to the use of the WTO to provide the means for nationalization and harmonization. And Article 3 suggests the need to explain how the use of international agreements can lead to a de facto agreement.
2. How to enforce a WTO order?
In order to comply with this clause you should:
路 Don’t use the WTO as a means of negotiating a bilateral agreement between the two sides of a bilateral trade dispute.
路 Don’t provide your representative with any data or other documents that may be relevant and relevant to a possible future WTO dispute.
路 Don’t make any representations to the MFN that you intend to provide them.
In general, you should:
路 Inform your representatives about this clause within one year of your request for information.
路 Allow them to do this for four years but you must give the company the original request.
3. Is there a minimum requirement to apply for the trade agreement?
The standard mechanism for collecting information on the validity of a trade agreement is the World Trade Organisation (WTO).
However, the WTO only provides information to members of its Members (see the WTO Member States Guide in Appendix A for details) and does not establish a statutory minimum of seven years from the date of making the request until it has been legally agreed to. Therefore, your representatives are not required in their job to comply with this standard requirement to provide specific data (as they have not been provided data for the trade agreement). Thus the idea behind the WTO’s policy may be that it will provide a minimum time period that it would have to take to enforce a WTO decision but not if there is a new requirement to comply that comes before it.
There are numerous possible requirements under WTO procedure:
路 They should be based on a specific point to be made in the WTO.
路 They should go under a specific category in the WTO’s Decision Review Process.
路 They should comply with rules on WTO law.
4. Does the ‘standard mechanism’ mean that there will be no ‘fair and equitable’ process, or (as is commonly claimed) that this will be necessary in any future negotiation?
No. Trade negotiation is made not only by making agreements but also by drawing up the WTO Disputes Settlement (DSS) and MFN rules and negotiating treaties.
5. Does the WTO’s ‘expertise, policy and management’ clause mean that a single WTO member member is obliged to provide
Freer trade: gradually, through negotiationWTO encourages countries to remove tariff and other barriers that distort competition in the international trade in order to make trading more conducive for fair and equitable competition in an open market. This is beneficial, but it also requires adjustment but countries are required to achieve it gradually.
Predictability: through binding and transparencyCountries that agree to open up their markets are bind by their promises and they are required to be committed to it. Each country is therefore bind to be transparent by giving clear information about policies, rules and regulation. This will give traders the views to be able to make some predictions on trade based on such promises and policies. Any country can as well change its promise but this can only come after negotiating with its trading partners, which could mean compensating them for any possible loss of trade
Promoting fair competitionThe most important principle of WTO is trade without discrimination. But they are also aware of the fact that the host countries are also prone to “dumping” which according to Madura (2007) is “selling at an unfairly low price” at the expense of the local products. Trading partners can use the opportunity of open market to export at below cost to change market share. For protection against such, WTO system does allow tariffs and, in limited circumstances and other forms of protection like special charges or administrative practices to make foreign goods uncompetitive. This is not a violation of trade