WTO Law and Trade Policy - Research Paper Example

Introduction The concept of trade is as old as mankind. People, nations and organizations at different eras in human life, have been engaging in trade in services and commodities. The nature of trade has however been advancing, based on the growth in globalization, technology and liberalization of markets. This has seen the emergence of different organizations and institutions, which regulate and monitor trade between nations. The WTO has been one of the most popular organizations regulating international trade. It has been categorized as one of the 3 international organizations, which formulate, regulate and co-ordinate world economic policy. The WTO has a great role in influencing and promoting international trade, through its trade policies. The WTO, which acts as an umbrella institution, has the mandate of covering and checking the agreements concluded between nations. This is majorly the agreements concluded at the Uruguay Round, where the WTO was launched. It is important noting that the crucial role of the WTO, is to offer a common institutional structure/framework, for executing trade agreements. In this essay, the ways and approaches adopted by WTO in regulating member’s trade policy and practices will be discussed. Discussion Based on the WTO principles of international trade, harmony between member states is ensured. The key principles which the WTO adopts in regulating trade and policies of members, include the principle of non-discrimination, principle of reciprocity, principle of transparency and the principle of fairness. These principles enable the WTO to regulate the member’s trade policies and practices, by ensuring the rights, privileges and freedoms of other members are safeguarded. In order to regulate and check the trade policy and practices of its members, the WTO provides certain institutional arrangements to be followed by member states. This ensures order and discipline concerning trade policies and practices of the members. It is worthwhile noting that the WTO provides specific and flexible institutional framework, on various free trade agreements. This is of importance, in guiding the practices of each member state. The WTO also establishes a common institutional framework, which enables the implementation of free trade agreements. By setting these institutional frameworks, the WTO is able to check each and every trade practice and policy of members, to ensure they abide to the set frameworks (Bossche 72). In order to regulate the trade practices of members, the WTO also implements countervailing measures. In the event when a member state bleaches the trade agreements as well as the sovereign power of other nations, the WTO comes in to solve the dispute. This entails the application of countervailing measures, which in this case, are initiated against a state. By so doing, fairness in international trade is attained. The WTO has identified and established a number of conditions of trade, which are aimed at protecting the interests and privileges of all members. The organization is always honest in its conditions, by ensuring that the policies and regulations are transparent. By so doing, the organization is able to attract commitment and trust from all members, thus regulating trade practices (Dunkley 108). In regards to members’ trade policies and practices, the WTO executes trade regulation, through trade policy reviews, which are aimed at ensuring transparency and fairness. This is achieved through consultations with governments. It is notable that governments have an obligation to inform the WTO, as well as fellow-members of specific policies, measures and laws through regular notifications. This is a structure/framework which has been established by the WTO, to ensure transparency in the setting of trade policies. On the other hand, the WTO also conducts regular trade policy reviews on individual countries. This is aimed at ensuring that all members abide to the set trade policies. All the trade reviews undertaken by the WTO, are in accordance with the Uruguay Round agreement. The organization demonstrates the legality and authenticity of its operations, by conducting these reviews, which enable it to identify conformity of the members to the set framework, as well as reporting and acting on any irregularities (Bossche 102). By executing the trade policy reviews, the WTO is able to increase the understanding and transparency among member’s trade practices. Through regular monitoring of trade policies and practices, the WTO is able to ensure fairness and discipline in international trade. One of the major aims of the trade policy reviews, is to ensure transparency and understanding among member states. The reviews also ensure the improvement of quality of public, as well as intergovernmental debate on trade issues (Dunkley 38). The use of sanctions, levies and fines, is also a key approach adopted by WTO, for regulating the trade policies and practices of members. The WTO has been identified to exert stiff measures on members, who fail to adhere to the set frameworks. The sanctions and fines imposed by the WTO, are guided on the disputes, as well as the set trade agreements. If sanctions are not practical on the same sector of the dispute, the WTO imposes the sanctions on different sector of the same agreement. The dispute settlement body of the WTO constantly monitors the manner in which adopted rulings are implemented. The out of court panel process is usually considered, in addressing trade disputes among members. This helps in ensuring transparency and fairness in checking trade disputes, which in turn guarantees adherence to set trade policies and agreements. Being a member driven organization, the WTO ensures fairness in trade policies, by ensuring all decisions are made by all members. This is a key approach in the execution of trade policy regulations among the WTO member states. Through the adoption of consensus in arriving at trade policies, frameworks and sanctions to be applied to defaulters, the WTO is able to monitor and guide trade practices among members (Dommen 64). Conclusion In summation, the discussion and analysis, has clearly shown that WTO is always in the forefront, in regulating trade policies and practices of member countries. Since the WTO is a member driven organization, it offers a fair working ground, where members can participate in decision making. The organization regulates trade policy and practices, through regular trade policy reviews, sanctions, countervailing measures, and establishment of trade policy frameworks. Through these approaches, the WTO is also able to monitor the trade policies and practices of countries, thus ensuring fairness, non-discrimination and transparency. Works Cited Bossche, Peter. The Law and Policy of the World Trade Organization: Text, Cases and Materials. New York: Prentice Hall, 2008. Print. Dommen, Caroline. Trading Rights? Human Rights in the World Trade Organization. New York: Zed Books, 2004. Print. Dunkley, Graham. The Free Trade Adventure – The WTO, the Uruguay Round and Globalism: A Critique. New York: Zed Books, 2000. Print. Read More