International trade

International trade

• Consider as international relations at the trade policy level such as

tariff and non tariff policy, offensive and defensive trade policy or
the economic integration policy of a state.
• The main subject of international trade relations are states and
economic organizations.
• International economic organization like WTO, IMF, WB, EU and
ASEAN strongly involve in trade relations.
• Expansion of regional economic integration is an global implication.
Regional economic integration

• Important actors in international trade relations.

• Economic integration is sometimes referred to as regional
integration as it often occurs among neighboring nations.
• is an arrangement among nations that typically includes the
reduction or elimination of trade barriers and the coordination of
monetary and fiscal policies.
• aims to reduce costs for both consumers and producers and to
increase trade between the countries involved in the agreement.
Example of economic integration

• TRIPS agreement, wherein there is stricter IPRs protection in

certain industry like pharmaceutical, entertainment and software
companies.
• The multiplicity of actors on the international trade scene could
be both potential strength and the fragmentation of the
international trading.
International trade rules

• Provides the rules of the game for the international trade game.
• A wide range of rules that are international and relate trade or
economics having legal or regulatory nature.
• Expression of trade policy
• Focuses on the legal instrument that govern international trade
flows.
• International treaties relating to trade, domestic regulations
affecting trade flows.
W.T.O agreements ( global treaties)

• It provides a binding set of rules on a wide range of international

trade related topics.
• Constitute multilateral trade rules.
• Bilateral trade treaties
Prominent trade treaties

• EU
• NAFTA
• MERCOSUR
• ASEAN Free trade area
The role of the States level

• States make provisions governing the cross-border movement of

goods, services, labor, capital and currencies.
• Treaties with other states and international trade organizations
which aimed is to facilitate trade.
• In order to promote international trade, states should create a legal
environment that help to increase the competitiveness of its goods
and services and labor comparison with other states.
• In order to protect domestic industries, employment and
technologies to prevent capital going out from its territory, states
should create a legal framework with a defensive orientation.
Reasons why there is a need for international
trade rules

1. Trade restrictive measures

2. Security of traders and investors
3. To cope up with challenges presented by economic globalization
such us public health, environmental issue, cultural identity and
minimum labor standard.
4. To achieve greater measure of equity in international economic
relations.
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