International Trade Organizations And Agreements

So far, you`ve seen international organizations such as the WTO, the IMF, and the World Bank support global trade, but that`s only part of the story. Where world trade is actually stimulated, there are trade agreements (also called trade blocs). This is where the term “global economic integration” takes its legs – from the process of changing barriers between and between nations in order to create a more integrated global economy. trade agreements differ in the amount of free trade they allow between members and non-members; each has a unique level of economic integration. We will look at four of them: the Regional Trade Agreement (RTA) (also known as the “free trade area”), customs unions, common markets and economic unions. A preparatory committee was established in February 1946 and met for the first time in London in October 1946 to work on the Charter of an International Trade Organization; Work continued from April to November 1947. [3] The EU works through a system of independent supranational institutions and intergovernmental decisions negotiated by the Member States. The main EU institutions are the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union and the European Central Bank. The European Parliament is elected every five years by EU citizens. The EU has developed an internal market through a standardised legal system applicable in all Member States. Passport controls have been abolished within the Schengen area (which includes EU Member States and third countries). EU policy aims to ensure the free movement of people, goods, services and capital, to legislate in the areas of justice and home affairs and to maintain common policies in the areas of trade, agriculture, fisheries and regional development. A monetary union, the euro area, was created in 1999 and has consisted of 17 Member States since January 2012.

Thanks to the Common Foreign and Security Policy, the EU has developed a limited role in external relations and defence. Permanent diplomatic missions have been established around the world. The EU is represented at the United Nations, the WTO, the G8 and the G20. Overall, the WTO`s mission is to improve the stability and predictability of world trade. As a result, it tends to support free trade, contrary to protectionist policies, and strongly advises against the use of quotas and other such import restrictions. Since the signing of the GATT, several “round tables” have been held on trade liberalization. The most important were the Kennedy Towers, which eventually reduced tariffs by a third, and more recently the Uruguay Towers. .

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