Summary on the Law and Policy of the World Trade Organization

by Peter Van den Bossche (Pg: 1 to 65)

Introduction.

The Author initially have analysed on the world population and divided people who are in
absolute poverty level. According to the World Bank data mentioned by the author it is been said
that in the year 1981 overall 1.451 billion people were in extreme poverty and which gradually
reduced to 1.101 billion in 2001. The former US President stated in the Nobel Lecture on 2005
the hardest and most serious problem is growing rift between rich and poorest Hence the main
problem leads to poverty is there is lack of economic globalisation and taking it to the high level
of International trade and Foreign Direct Investment. Therefore the author have given out his
view on improvising the economic growth by initiating International level Trade.

Economic Globalisation and International Trade.

Econmic Globalisation is the mainstream for more than a decade. Whereas few Nobelist have
given their view on Globalisation. It encircled with both international trade and foreign direct
investment. it was said that Economic intregration was double than today. Before the First World
War there was reduction in cost by innovation technologies. Most likely Britain and france were
Sighlty open to the concept of trade today. While extention of global economic to International
Trade shall bring different countries closer together. There shall be a price fluctuation within
countries due to transport, cost and tax etc. In the second part of the Economic Globalisation it
focused on the glitch due to technology with affects the transport, communication. But also it
speeded up the trade within countries Second driving force of economic globalisation is
liberalisation of trade and FDI lowered the barrierr and alowed free movement of worldwide
trend. This part also analyses on the facts and figure on world trade and its investment.

Economic Globalisation is boon or bane ?

Though economic globalisation is giving a right way of satisfaction. On other hand it has
disadvantages whereas there are many protesters in different part of the countires on
dissatisfaction on economic globalisation. The opposition for econmic globalisation emphasis on
developin countirs is not suffiently taken in to account such as Envirinment, Social, Cultural
interest. and also for Unemployment. Countries like India and Brazil which has large population
appear to be fearful towards trade liberalisation and economic globalisation. Currently economic
globalisation and internation trade prompt to be problematic in developed countries. Many
NGOs given voice on affects of Economic globalisation whereas they want to see benefits of the
globalisation more evenly across the world.

Trade liberalisation Vs Protectionism.

As many demerits as be pointed out. This concept emohasis on merits and it brings question
whether economic globalisation and internatioanl trade in particular benefits all humankind?
Whereas the propounder of the Principles of Political Economy and Taxation developed the
theory of Comparative Advantage. It sayd that exchange of one goods for another is make the
trade better understanding in both economic and development of ones country. World Bank
showed that developing countries increased their integraion into the world economy in 1980s and
1990s ahieved the growth in incomes. Countries like China and India have adopted domesticc
policies. International trade not only brings economic benefits bu also non economic gains.
International trade effectively develops both incentives for not making war and costd of going to
war. Opposite in nature, a country taking trade restrictive measures diretly imposes economis
hardship upon exporting countries. Henceforth protectionism is a festering source of conflict. On
other note international trade can contribute peaceful and constructive international relations.

Why countries takes Restrictive Measures? There are various reason coutires taking restrictive
measures. The main reason is to prevent the domestic industry and its employment in the
competitive world of internatioanl trade.

Globalisation and Trade to the benefit of all?

The United Nations Millennium report spoke of addressing globalisation in ''overaching

challenge". It is been argued that globaisation benefits not only to individual but also better
understanding between nations. Firstly globaisation at present is far from equal distrubution.
Secondly the global market does reach, it is not yet underpinned, as national markets are, by
rules based on share social objectives.

International Rules for International Trade:

Need for international rules are opined by many Formers and Nobelist. But what exactly meant
of International rules it is dealt with four reason;

Firstly, Restrained from Adopting trade-restrictive measures both in own interest and world
economy.

Secondly, Security and Predictability for Investor and traders.

Thirdly, Government alone cannot cope with the challenges presented by economic
globalisation.

Fourtly, To achieve a greater measure of equity in international economic relations.

Without international rules, binding and enforceable on the rich as well as poor and development
of countries may not able to achieve fully in world trading system.

Agreement related to International Trade is bilateral or regional trade agreement and the other is
multilateral trade agreements. Th North American Free Trade Agreement (NAFTA) and
Mercosur Agreement are example for regional trade agreement. The most important multilateral
trade agreements is Marrakesh Agreement Establishing the World Trade Organisation.

Basic rules and Principles of WTO law:

There are six basic rules and principles are distinguished :

1. The principles of non discrimation

2. The rules on market access including rules on transparency

3. Conflict between trade liberalisation and other societal values

4. Special and differential treament for developing countries.

5. Number of key institutional and procedural rues related to decisions making and dispute
settlement.

Above basic rues and principles of WTO reffered as Multilateral trading system. The two
principles of non-favoured in WTO law: Most Favoured Nation treatment and National
treatment obligation. WTO ghave not prohibited the custom duties and also does not provide for
general rules on unfair trade practices. This rules deals with Dumping and subsides trade.

The Marrakesh Agreement Establihing the World Trade Organisation

The Agreement has four Annex. Annex 1 consist of three parts. Whereas Annex 1A contains
General Agreement on Traffis and Trade 1994. Annex 1B contains GATS. Annex 1 C contains
TRIPS Agreement.

General Agreement on Traffis and Trade 1994: The GATT 1947 terminated to 1996 it is to
facilitate the necessary provisions of the GATT 1947. THe GATT 1994 contains most favoured
nation treatment (Article I ) and overall GATT consist of Article XXXVIII.

General Agreement on Trade in Services: It is first Multilaternal agreement on trade and services.
It esablishes a regulatory framework witihn whichWTO member can undertake on liberlisation
of trade and services. GATS contains totally XXVI Articles.

Trade Related Asoects of Intellectual Property Rights. It is not an agreement concerning trade.
This Agreement covers seven types of intellectual property such as Copyright, Trademark,
Patent, etc. It protects members from infringment of the intellectual property rights.

WTO LAW IN CONTEXT.

This context relation to WTO and international law. WTO law ia an intergral part of
international law. As there are many scholars given their opinion on WTO and International law.
The WTO members are binding on general international law, composed of customary
international law and general principles of law. Moveover WTO law must be intrepretated
taking other international norms into account. There are certain obligations and conflict with
WTO and other agreements. Such conflicts between WTO and non- WTO shall be avoided with
clever interpretation. As Marceau noted that Panels and Appellants body have the obligations to
interpret the WTO provisions in taking inti account all relevant rules of international law
applicable to the relations between the WTO members.

CONCLUSION.

Overall the chapter of World Trade Organisation deals with law which enhance the economic
conditions to International trade in order to improvise the countries Economy and the improve
proverty suffering group. So the International trade has to meet comflicts and such conflicts has
to disolve in regard to laws legislated to each countries. There are many agreements that nation
has to bind in order to improvise peaceful trade and services. Each agreement has merits and
demerits which has to be interpreted with one and other. To avoid conflicts or mistakes rules ae
provided such as WTO, TRIPS, GATS, and GATTS which laid down their own rukes and
regulations to become a member of each agreement one country should ratify itself .