Global Trade Law - Assignment Example

Global Trade Law Introduction Overview of the Topic The General Agreement on Tariffs and Trade (GATT) was an international trade regulating body, operated its functions with the aim of reducing the substantial trade barriers and to ensure the trade and employment among the international trade organisations. The GATT was formed in the year 1947 and started its operations since in the year 1948. Moreover, GATT has operated its functions until 1994, when it was renamed as World Trade Organisation (WTO). The effect of globalisation has been observed among globe in the year 1970s, whereas GATT has provided its attention towards international trade policies since after the year 1948. In order to identify the objective of the GATT/WTO, it is revealed that GATT/WTO has concentrated towards international trade policies with the intention of ensuring the international trade agenda. At the same time, GATT/WTO has tried to develop the international trade security. In this regard, GATT/WTO has concentrated towards economic factors with the intention of ensuring the interdependent international trade policy. In this context, GATT/WTO has emphasised towards securing the supply of natural resources such as oil, food as well as human security among the global countries. Apart from this, GATT/WTO has concentrated on political framework to establish a supportive internal trade relation among the global players and to create a supportive business environment. Additionally, it can be claimed that for ensuring the economic factor and positive trade relations among the global players, WTO/GATT has concentrated towards world industrials systems and also tried combat with environmental threats such as climate change. Additionally, it can be claimed that the WTO/GATT has provided its superior effort with the aim of enhancing the international trade as well as investment environment (Falkner, 2011). Paper Objective The objective of this paper is to identify the economic theory underpinning contemporary international economic relations. At the same time, this particular assignment has concerned with the broad principles underpinning WTO law, and with an analysis of specific agreements and disputes. Moreover, the study intended to identify the contemporary legal problems of WTO. Discussion With the effect of globalization and internationalization, it is revealed that most of nations no longer discussed in isolation, rather it is revealed that larger numbers of nations have concentrated on economic and political chance for ensuring the international political relations. In this regard, it is witnessed that several nations have concentrated on economic exchanges as well as political relations with the aim of developing the overall international relations. At the same time, it is also witnessed that large numbers of nations have brought changes in terms of technological aspects with the aim of enhancing the performance of global commerce. In this regard, it is also witnessed that several multinational corporations have concentrated on establishing production unit among the in several countries with the aim of ensuring the trade and commerce activities across the globe. Moreover, it can be also claimed that with the intention of ensuring the international relations among the global nations, WTO has allowed social media, international travel and communication approaches cultural exchange. At the same time, WTO has tried to establish an interconnection between economic and social factors with the aim of enhancing the opportunities for the global nations. On the other hand, WTO has also tried to reduce threats for the nations across the globe (Falkner, 2011; Walt, 1998). According to the viewpoint of Meyers (2005), it is revealed that in the contemporary era, the interpretation of international relations depending upon crisis management and crisis revolution. At the same time, it can be claimed that Attina (2014) claimed that international relation theory signifies the development of ‘political’, ‘socio-economic’, ‘ecological’ phenomenon. In this regard, it can be claimed that GATT has provided its superior effort from 1948 to 1994 with the aim of ensuring the growth of global trade in terms of international commerce. At the same time, GATT tries to establish trade negotiations among the global players. In order to identify the structure and system of GATT, it can be claimed that GATT usually had offered its membership based on three basic interrelated functions such as such as ‘negotiation’, ‘illumination’ as well as ‘litigation’ (Attina, 2014; Meyers, 2005). According to the report of Brookings (n.d.), it is revealed that GATT has aimed to improve the dispute settlement among the developing countries for influencing proactive contribution. At the same time, it is also revealed that GATT tried to reduce underlying political as well as economic forces with the aim of establishing a shape trade relation among the independent nations. Simultaneously, it can be claimed that GATT has concentrated on trade liberalization negotiations with the intention of enhancing the outcome of the trade flows as well as economic activities around the globe (Brookings, n.d.). Traditional International Economic Relations According to the viewpoint of Andrews-Speed (2008), GATT has emphasised to develop the international trade system. In this regard, GATT has provided its attention towards the economic development of developing nations. At the same time, GATT has concentrated towards the flow of global financial and monetary order. Apart from this, GATT has also tried motivate multinational corporations for enhancing the overall trade and commercial performance. Additionally, GATT has also tried to ensure the protection of resource as well as environment. According to the viewpoint of Baldwin (1993), GATT has tried to built or infuse three classical approaches in the economy such as ‘Mercantilism’, ‘Liberalism’ and ‘Marxism’. In this regard, it is identified that mercantilism approach signifies profitable trading in an economy, which is usually encouraged by the government for playing a central role in the overall economic activities. At the same time, the concept of liberalism signifies liberty. At the same time, liberalism signifies equality. In this regard, it can be claimed that GATT has tried to establish equality and liberty in the global economy for ensuring international trade relations. On the other hand, it is also revealed that GATT has concentrated on Marxism theory for ensuring the development force in terms of political and economic factors. In this regard, it can be claimed that GATT has tried to establish capitalism in the global context (Andrews-Speed, 2008; Baldwin, 2003). According to the viewpoint of Bronckers & van den Broeck (2007), GATT has started its operation around the globe during the year 1947, whereas the concept of globalisation has been introduced in the year 1970s. In the year, 1947 GATT has started its operations with 23 member countries. In the year 1994, it is notified that 128 countries have become the members of GATT association. In order to identify the principle of GATT, it is identified that GATT has especially concentrated on developed economic countries with the intention of enhancing the overall economic performance of the country. In this regard, it is notified that in order to ensure the supplying interest and to reduce the negative impact, GATT has concentrated on the import barriers of the developed countries with the intention of reducing the challenges and threats if the global nations. At the same time, it is also revealed that GATT has also tried to establish export activities with the other countries for ensuring the political trade expansion in the global market (Bronckers and van den Broeck, 2007). In order to identify the international economic relations, according to the viewpoint of Magnus (2005), it is revealed that GATT has highly emphasised towards agricultural trade with the aim of enhancing the international relations among the global nations. In this regard, in 1950s the United States has requested GATT to establish an agricultural trade market through the help of its Common Agricultural Policy (CAP). Regarding this aspect, Chua (1998) claimed that due to lack of discipline in the agricultural trade, as an effect it is witnessed that several countries have suffered complications regarding the import and export of agricultural products. At the same time, it is also revealed that complicated domestic agricultural trade policies have influenced several barriers in the agricultural trade relations, which also have affected the overall stability of the agricultural trade market (Magnus, 2005; Chua, 1998). On the other hand, Jackson & et. al. (2012) claimed that GATT has also concentrated to establish clothing and textile trade operations with the aim of improving the overall trade performance and to enhance commercial activities among the global nations in terms of import and export. In this regard, it is identified that GATT has encouraged Japan to introduce ‘Short-Term Arrangement’ regarding cotton the year 1961. Moreover, it is also notified that Japan has also established ‘Long-Term Arrangement’ and ‘Multifibre Arrangement’ (MFA) between the year 1962-73 and 1974-94 respectively (Jackson & et. al., 2012). In order to identify the role and function of dispute settlement under the WTO, Jackson (2006) claimed that before the effect of globalisation GATT has considered multilateral trade negotiations as a one of the most essential constituent for establishing trade relations among the global nations. In this regard, it is its notified that GATT has emphasised towards the supplying and export negotiations among the global nations for the successful implementation of liberalization. At the same time, it is also revealed that GATT has concentrated on market, reciprocity and formal rule of renegotiations with the intention of enhancing the commitment of global countries (Jackson, 2006). According to the report of World Trade Organisation (2011), it is revealed that GATT has tried to accomplish the success in terms of enhancing the overall trade and commercial performance among the global nations. At the same time, GATT has also emphasised to reduce tariffs related problems amid the global nations. In this regard, it is witnessed that during the 1970s, global recession GATT has witnessed several challenges. But with the effect of globalisation, it is depicted that foreign trade related competitions have been enhanced among the global players in the early 1980s (Dannreuther, 2010). As a positive effect, it is witnessed that employment related problems have been reduced among developing and developed nations, which can be considered as an effectiveness of GATT. Moreover, it is also revealed that GATT rules have influenced positive interest among the major numbers of global countries in terms of international relations, investment and capital (World Trade Organisation, 2011). Contemporary International Economic Relations According to the report of World Trade Center (2009), it is revealed that in the year of 1st January 1995, the GATT has been become WTO with the number of 75 existing members. During that point of time, 52 more countries have registered their name as a member of WTO. Moreover, based on the recently published news it is notified that WTO has 159 member countries around the globe according to the record of 2013. In order to identify the objective of WTO, according to the viewpoint of Charnovitz & Kearns (2002), it is revealed that the current systems of WTO’s actual objective is to dispute settlement among the global countries in terms of international trade and commerce. Moreover, it can be claimed that the WTO objective is to provide satisfactory solution among the disputing parties with the aim of fulfilling their interest. At the same time, it can be claimed that WTO tries to ensure guarantee among its members to enhance the international trade relations. In this regard, according to the report of World Trade Center (2009), it is revealed that WTO has specifically concentrated on certain aspects with the intention of enhancing the overall trade and commercial relations and negotiations among the globe. In this regard, the report claimed that WTO’s functions are helps larger number of countries around the globe in terms of executing or developing their global trade policy, agreements and negotiations with the foreign countries. Moreover, it is also revealed that in the contemporary presence of WTO ensures the smooth, fairly and freely executions of trade operations around the globe (Thad & Wiprsa, 2004). In this regard, it can be also claimed that WTO’s agreements help global nations to ensure the trade operations between goods and services. At the same time, WTO’s agreements also help to settle disputes among the global nations and it also help to maintain Intellectual Property Rights (TRIPS). On the other hand, WTO also assists global nations in case of Trade policy reviews (World Trade Center, 2009; Charnovitz & Kearns, 2002). In order to identify the role and function of dispute settlement under the WTO, it can be claimed that WTO has tried to establish a non-discriminatory trading system among its member countries through ensuring the agreements regarding rights and obligations. In this regard, Emanuel (2003) claimed that WTO has established its agreements for ensuring the employment opportunity among its member countries. At the same time, WTO has also concentrated on the expansion of production and trade among its member countries. In this regard, it is also identified that the actual objective of WTO is as similar as GATT (David, 1985). Thus, during designing the preamble WTO has introduced several modifications on its membership agreements with the aim of enhancing the standards of living for the member countries. In this regard, it can be also claimed that WTO objective is to ensure the sustain development. At the same time, WTO has also concentrated on the economic development related aspects. In this context, WTO has specially emphasised towards production and distribution of goods. Simultaneously, it is also revealed that WTO has also concentrated on environment and natural resource related aspects with the aim of ensuring the protection and preservation of trade interest. Moreover, it can be claimed that WTO has facilitated its member countries through the ‘implementation’, ‘administration’ and ‘operation’ of its ‘Plurilateral Trade Agreements’ (Bonnie, 2006; Emanuel, 2003). According to the viewpoint of Hoekman & Trachtman (2010), it is also revealed that WTO has also concentrated on the negotiations, which can be claimed as a one of the key functions of WTO. In this regard, it is witnessed that WTO has tried to ensure multilateral negotiations among its member countries with the aim of ensuring the multilateral trade relations around the globe. Simultaneously, it can be claimed that disputes settlement and policy review is also one of the most essential functions of WTO in the contemporary era. In this regard, it is identified that WTO has tried to build a suitable trade relations among the global nations with the aim of enhancing overall economic position of the globe. In this case, it can be claimed that WTO has fulfilled its functions amid its member countries through the help of International Monetary Fund (IMF). At the same time, it is also witnessed that World Bank (WB) and International Labour Organisation (ILO) also has helped WTO to develop the global economic position. At the same time, WTO also has established sustained international relations among its member countries (Hoekman & Trachtman, 2010). WTO’s Legal Framework On the other hand, in order to identify the underpinning WTO’s law; it can be claimed that for ensuring multilateral trading system and to reduce the employment related problems, WTO has established certain policies and laws. At the same time, it is also revealed that with the aim of ensuring the trade operations among the global nations and to ensure sustained development, WTO has established certain laws and regulations for its member countries. In order to identify the WTO’s law it is revealed that according to “Article II” WTO has provided common framework for its member countries with the aim of ensuring the trade relations among the members. At the same time, it is also revealed that WTO has established ‘Plurilateral Trade Agreements’ for its member countries with the intention of ensuring the rights and obligations of its member countries. Apart from this, it is also revealed that WTO has adopted ‘Final Act’ with the aim of ensuring the ‘Preparatory Committee’ of the ‘United Nations’ (UN) regarding trade and employment (World Trade Organisation, 2014). Similarly, based on the report of World Trade Organisation (2014), it is also revealed that WTO has established a ‘Plurilateral Trade Agreements’ among its member countries with the aim of ensuring the benefits among the members countries in terms of ‘implementation’, ‘administration’ as well as ‘operation’. In this regard, it is also identified that WTO has remained utmost concern regarding ‘multilateral trade relations’ with the intention of ensuring the negotiations and agreement among the member countries. Moreover, WTO has established ‘Ministerial Conference’ for better understanding the rules and procedures of governing in case of dispute settlement. Simultaneously, it can be claimed that WTO has concentrated on trade policy review mechanism with the intention of enhancing the functional capability of WTO. Based on the above discussion, it can be claimed that WTO has tried to accomplish greater consistency in global economy through implementing economic policy. At the same time, it can be also claimed that WTO has relied on several agencies for the appropriate execution and implementation of its functions. In this context, it is revealed that WB, IMF and International Bank for Reconstruction and Development (IBRD) have helped WTO in significant manner (World Trade Organisation, 2014; Moravcsik, 1997). At the same time, the report of World Trade Organisation (2014) mentioned that WTO has composed a ‘Ministerial Conference’ for its member countries with the intention of making the necessary decisions regarding the ‘Multilateral Trade Agreements’. On the other hand, it is also depicted that WTO has composed a ‘General Council’ for carry out its assigned functions by adhering the rules and procedure of WTO. Moreover, according to “Article III” it is recognised that WTO has concentrated on its structure for ensuring the fulfillment of its trade policy related responsibilities. Apart from this, based on the report of World Trade Organisation (2014) it is identified that WTO also has concentrated on trade related aspects for its member countries with the aim of ensuring the ‘Intellectual Property Rights’. This, ‘Intellectual Property Rights’ signifies the guidelines for the WTO’s member countries, which assist global nations to maintain the rules and procedure of implementing the ‘General Agreement on Trade in Services’ amid the WTO member nations. In this context, it can be also claimed that this ‘Intellectual Property Rights’ helps WTO member countries to carry out the necessary functions for enhancing or developing the trade relations among the globe (World Trade Organisation, 2014; Moravcsik, 1997). According to the viewpoint of Stefanović (2008), it is notified that with the effect of globalisation, major number of countries have shown their positivity towards the international trade relationships. In this regard, it is identified that WTO has established required subsidiary bodies with the intention of developing the trade and commercial operations among the global nations. In this context, the ‘Ministerial Conference’ has established specific committee with intention of reviewing the functions of ‘Balance-of-Payments Restrictions’. At the same time, WTO also has established a specific committee for reviewing budget, finance and administration related functions during the ‘Multilateral Trade Agreements’ (Stefanović, 2008). According to the viewpoint of Bronckers & van den Broek (2007), WTO has tried to ensure the trade operations among its member countries in an ethical way and fair manner. At the WTO also supervise and monitor its member countries, where the members are abiding the negotiating rules and procedure during its trade agreements. Apart from this, WTO also reviews its trade policies in order to ensure dispute settlement and try to identify intellectual property relevant aspects. Additionally, it can be also claimed that WTO tries to reduce the discriminatory actions during its members’ trading or commerce related operations. Thus, WTO has spell out certain rights and obligations for its member nations. Moreover, it can be claimed that WTO has tried to grow flexibility among its member nations with the aim of ensuring the fairness and consistency among the member countries regarding international trade and commerce related operations. In this regard, Cuppett (2000) argued that WTO has tried to reduce the global dispute regarding the international trade through introducing ‘Agreement on Sanitary and Phytosanitary’ (SPS) measures, which has helped global nations to reduce the complicacy during global trade. At the same time, it can be claimed that SPS agreement has also assisted WTO to execute negotiations during the international trade dispute settlement (Bronckers & van den Broek, 2007; Cuppett, 2000; Mann, 1999). Problems of WTO Regarding Legal Framework In order to identify WTO’s legal framework related problems, based on the viewpoint of Bronckers & van den Broek (2007) it is depicted that the first problem has been witnessed by WTO is compliance related problems. Over the year, it has been notified that WTO has faced certain difficulties and challenges in terms of trade retaliation as well as trade compensation related measures. In this regard, it is revealed that WTO has tried to incorporate non-complying countries to the WTO laws. Regarding this aspect, WTO has tried to build exercise pressure on the non-complying countries (James, 2005). Apart from this, it is also revealed that WTO does not provide remedies for the reparation of damages. In this regard, it is revealed that WTO has faced several challenges regarding this aspect. As an effect, it is witnessed that several developing countries have faced several dispute and discrepancy regarding the domestic and international laws. Apart from this, it is also identified that WTO has faced several challenges due to its significant flaws related to its international trading laws. According to the viewpoint of Cottier & et. al. (n.d.), it is revealed that WTO has faced certain difficulties regarding the regulation of energy i.e. of international law. In this regard, it can be claimed that largely incoherent WTO’s law has affected the overall trade agreement and trade policy. As an effect, the impact has been directly observed on the WTO’s legal framework. On the other hand, climate change related aspects have affected the trade regimes. At the same time, it is also recognised that non-complying countries production as well as export restrictions have influenced several challenges for the WTO’s legal framework. In this regard, it can be also claimed that the execution of green procurement operations have influenced several challenges for the WTO laws (Bronckers & van den Broek, 2007; Cottier & et. al., n.d.). In this regard, in order to identify the contemporary status of WTO’s energy related laws, Cottier & et. al. (n.d.) claimed that in the recent days, the energy industry has distinguished the energy related goods and services separately. In this regard, rationally it can be argued that as an effect of liberalization, the energy industry has separated its goods and services significantly. Thus, WTO has introduced a new legal framework during the modern era. In this regard, it is identified that Oil, Coal and other solid fuel related items have been considered as a category of goods. On the other hand, it is also revealed that liquid resources and items have been considered as a category of services. In this context, according to the WTO rules, all these goods related items have considered as a part of ‘General Agreement on Tariffs and Trade’ (GATT) functions, on the other hand, it can be claimed that all these services related aspects have been included under the rules and policy of General Agreement on Trade in Services (GATS) (Cottier & et. al., n.d.). Findings and Outcome Based on the above discussion, it is quite apparently identified that with the effect of globalisation WTO was concentrated on trade relations among its member countries. At the same time, it is also revealed that WTO has tried to enhance the competition among its member nations. Simultaneously, it can be claimed with the aim of improving the trade and commerce related aspects; WTO has emphasized towards its trade policies. Apart from this, it is also revealed that the effect of globalisation has brought certain changes on the international political system. As an effect, it is witnessed that in the contemporary era, WTO has brought some changes on the rules and trade related policies due to political unification. On the other hand, as an effect of globalisation high fluctuation has been observed in the international power. Simultaneously, it is also revealed that political conflict and financial recession have influenced political and economical crisis in case of international trade relations (World Trade Center, 2009; Charnovitz & Kearns, 2002). Read More