WTO- World Trade Organization is the governing body that takes care of international trade procedures among the nations by creating standardised agreements for the countries involved. They have created five important agreements that aim at promoting liberalized trade.
Let us have a look at each one of these agreements in the following lines:
Liberalisation of Trade in Manufactures: Agreement on Tariff Bindings and Tariff Reduction:
This agreements is created in order to prevent the developed countries from dictating terms now and in the future to a certain extent. However, despite the implications of the agreement that the benefit of the tariff reductions doesn’t affect the developing countries significantly.
Agreement on Agriculture:
The main idea behind this agreement is to attain a liberalised agricultural trade. It was established in 1995 as a result of multinational trade negotiations by WTO. It includes the tariffication that are agreed by the members offering them same level of protection. The agreement also requires developed countries to be responsible and not increase tariff bindings beyond a specified limit. Another important aspect of this agreement is the reduction in agricultural subsidies and other related domestic support policies to promote the trading of farm products.
GATS- General Agreement On Trade In Services:
All the services offered in international trade are included under GATS leaving aside government and airline businesses. GATS requires the countries to trade in four ways i.e. the services should be supplied from host country to the other using proper communication. The consumers make use of good from the other country. Participants countries should have branch or subsidiaries in the other country. Individuals should travel from the home country to the other to provide services.
TRIMs-Trade Related Investment Measures This agreement has been created in order to establish certain restrictions or conditions that are formulated by a participating government in order to welcome foreign investment in the country. TRIMs agreement serves as a safeguard so that the capital investment from foreign nations are not discriminated in any way by the participating governments.
TRIPs- Trade Related Intellectual Property Rights
Intellectual property such as patents, copyrights, geographical indications, industrial designs, trade secrets, trademarks, layouts etc are sensitive information and often hold a great commercial value. TRIPs agreement is a security measure created to maintain the sanctity of the intellectual property during the international trade and provides protective measures to prevent misuse of the same.
Ari Afilalo has discussed the aforementioned agreements in detail in his book and has raised a discussion as to how these can be reframed or modified to improve the overall international trade scenario around the globe.