Which Agreement Laid The Groundwork For The Formation Of The World Trade Organization

Facebook Twitter Linkedin

To be eligible for the CGTA, a country would have to perform well on each of these factors.4 This would indicate that the country is open to trade and investment and maintains a secure rule of law with low levels of regulation. Current and future EU member states like these will be forced to accept EU rules, which would negate much of the good they have achieved by liberalising their economies. For example, EU member states are severely constrained by a regulation requiring them to negotiate trade agreements through the EU instead of making individual sovereign decisions about their trade agreements. For countries that want to form alliances with open countries and avoid being associated with organizations that adhere to anti-market guidelines, the logical alternative is to join the GFTA. Regaining U.S. leadership on free trade is now a priority. President George W. Bush has already indicated that he will ask Congress to give him accelerated authority to strike trade deals, and U.S. Trade Representative Robert Zoellick has made it clear that the Bush administration will promote “free trade globally, regionally and bilaterally” and that its policy would be to “reward good performance.” 2 CONCLUSION Trade promotes economic growth in countries with very different governance structures, mainly because it promotes competition and innovation in the market. These, in turn, offer consumers more choice and better ways to improve their standard of living.

This incentivizes companies to develop even better products and bring more of these goods and services to market, which helps to keep prices low and quality high. The winners are the people themselves. In addition to ensuring the benefits of free trade for its member countries, the GFTA also gives countries engaged in market opening the opportunity to form an alliance with like-minded countries. For example, in Europe, a number of small “periphery” countries such as Denmark, Estonia and Ireland have demonstrated a commitment to free and open markets and are often at odds with European Union (EU) rules. Over the past seven years, however, the United States has neglected its indispensable leadership in trade, slowing efforts to reach comprehensive international trade agreements. .

This entry was posted in Uncategorized by admin. Bookmark the permalink.

Comments are closed.