Strengths and Weaknesses of International Trade

WTO (World Trade Organization) holds the main purpose of a multilateral trading system. The different principles were set up to respect both developed and developing countries on trade liberalization. WTO provides enough information on economic and trade issues.

Current trade system has certain strengths and weakness. Strengths showing their importance to both the world economy and particular country economy, while dealing with the weak points are considered important within the WTO which may lead to critical and dramatic outcomes.

It’s apparent that the WTO has both strengths and weakness of International trade. The supporters of the organization believe that since it has been created, WTO has made more transparent negotiations and has increasingly involved its developing members.

Strengths

  • WTO has additional powers than the GATT, including the settlement of disputes. The system based on liberal theory which says that the use of force and support from countries gives rise to lack of trust and conflict.
  • The non-discrimination principle is it’s another strength. Any country, rich or poor, have the right to protest each other in the circumstance of dispute settlement procedures. The more powerful countries could unilaterally impose their will on small countries without a multilateral regime such as the WTO system.

Weakness

  • Regardless of the deadlines, a full dispute settlement procedure takes a significant amount of time, during which the plaintiff suffers economic harm if the challenged measure is WTO consistent.
  • No provisional measures are available to defend the economic and trade wellbeing of the flourishing plaintiff during the dispute settlement procedure.

Strengths of the WTO are also based on the economic benefits of free trade. Ari Afilalo, author and researcher is a specialist in International trade law and business transactions. His interests include the treatment of intellectual belongings in free trade areas. It is suggested that all people interested in trade law should have his book which is one of his great works.

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