International Economic Law

The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. The WTO also sets trade barriers, — for example to protect consumers or prevent the spread of disease.

It’s a set of rules trade and tariffs. Important documents signed by nations provide the legal ground-rules for international commerce. These are essentially contracts, binding governments to keep their trade policies within agreed limits, which are negotiated and signed by governments. Agreementsground-rules for international commerce. contracts, guaranteeing member

countries important trade rights bind governments to keep their trade policies within

agreed limits for each country's benefit.

Benefits of Free Trade System developed by WTO.

Consumers and producers know that they can enjoy secure supplies and greater choice of the finished products, components, raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them allowing for a more prosperous, peaceful and accountable economic world. All decisions in the WTO are taken by consensus among all member countries and they are ratified by members; parliaments. WTOs dispute settlement process interpreting agreements and commitments, and ensure that countries; trade policies conform with them. Risk of disputes spilling over into political or military conflict is reduced. Breaks down other barriers between peoples and nations.

The case for open trade

Freer trade = economic growth.

Economics tells us that we can benefit when these goods and services are traded!

The documents signed by the nations consist of rules which encompass

• rules forproducers of goods and services, exporters, and importers conduct their business;

• whilst allowing governments to meet social and environmental objectives;

• help trade flow as freely as possible — so long as there are no undesirable side-effects;

• Removing obstacles;

• Ensuring that individuals, companies and governments know what the trade rules are around the world.

• No sudden changes of policy.

• Rules have to be “transparent” and predictable so trade flows as smoothly, predictably and freely as possible.

• The result is assurance!