Issues With Global Economic Agreement

Since the end of the eighties and the beginning of the nineties, there has been a surge in the creation of trade agreements all over the world. The one encompassing the largest area and affecting the greatest number of people is the North American Free Trade Agreement (Text of the NAFTA, Organization of American States). The three major countries of North America signed this regional trade agreement in 1993: Mexico, the United States, and Canada. The North American Free Trade Agreement or the NAFTA, as it became popularly called, was an effort that was initiated by the United States. At first, there existed the CFTA agreement between the United States and Canada. Later the U.S.

One of the most well-known free trade agreements is the North American Free Trade Agreement (NAFTA). The North American Free Trade Agreement allows “Canada, the United States, and Mexico to set the rules

This paper will discuss four components of the North American Free Trade Agreement: Background, events, pros and cons. Upon the research, you will discover four online articles to provide more detail and examples. This research will indicate how it was developed and the reasoning on why it would benefit the nation. Also, it will provide events that occur after the agreement was signed by congress and the recession the countries experience during the early 2000s. There will be a chart located on Appendix A that will indicate the unemployment rates during 2008 to 2015. This paper gives readers the proper knowledge of the history throughout the North American Free Trade. It acknowledges the improvements that should be made in the future for a structure approach.

The World Trade Organization was developed in 1995 out of what was known as the Uruguay Round. Although GATT set rules they mostly dealt with issues just involving simple trade of goods and the distribution of tariffs. The WTO has a broader job than the GATT; “…it oversees multilateral agreements relating not just to good, but also to services, investment and intellectual property.” (Douglas Irwin, 186) The World Trade Organization is an independent organization and decisions are made out of consensus of the member countries involved, not from the World Trade Organization itself. When a country complains about another country and the way they run things that could affect their home country, the WTO must make a decision on what must be done. Once a ruling has been made the losing country must implement one of three strategies:

World Trade Organization ( WTO Eng . World Trade Organization (WTO) - an international organization founded January 1, 1995 for the purpose of international trade liberalization and regulation of trade and political relations between the Member States. WTO established under the General Agreement on Tariffs and Trade (GATT) .WTO is responsible for the introduction of new parts as well as enforces the members of the organization of all agreements signed by most countries and ratified by their parliaments. WTO bases its activities on the basis of decisions taken in the years 1986-1994 in the framework of the Uruguay Round and earlier GATT agreements. As of July 2012 , there are different groups of negotiations in the WTO system to address current issues in terms of agriculture, which leads to stagnation in the negotiations themselves .WTO headquarters is in Geneva , Switzerland. WTO chief ( CEO ) - Roberto Carvalho de Azevedo , in the state of the organization about 640 people. On March 2, 2013 the WTO consisted of 159 countries .

One of the major keys to having two or more parties successfully trade and invest with each other is the ability to make agreements peacefully and come to similar terms. Many times, people would like to trade goods and services, but cannot agree on the terms each other have made. This can obviously cause many problems with trading and is the reason many deals do not go through, which can impact not only the people involved, but many more people very negatively. This is why agreements are so important in today’s world, and the North American Free Trade Agreement is no exception.

Regional trade agreements such as the North American Free Trade Agreement (NAFTA) reduced barriers to trade in the form of a cooperative alliance and an elimination of taxes on trade goods between the United States, Canada and Mexico. The influence of this trade agreement was beneficial to businesses because it became easier to trade goods across international borders and it increased the development of standards. The European Union alliance works in a similar way to facilitate trade by standardizing laws and agreements, as well as using a standard currency among all of the countries. The development of these alliances was to increase competitiveness and to decrease inequality. The winners are the larger corporations who have the resources to dominate larger markets. The losers are the small individual and family owned businesses that do not have the same resources to ante up in a global market.

A trade liberalization process on a global scale has started since the post WWII period, with most countries pursuing the philosophy of international and national free trade. Even though the complete free trade has not been made possible yet, and maybe it will never be, numerous agreements have been made in the name of trade liberalization. They allowed the trade between different countries and within the same country to a certain degree of liberalization where several new business practices can be implemented.

The numerous trade agreements developed between different groups of countries reveal the success of developing such relationships. Countries these trade agreements have reported increased imports and

The World Trade Organization (WTO) was established on January 1, 1995 and is the most powerful trade body in the world. It has 133 member nations and 33 nations with observer status who have applied for membership. (Americanlands) On behalf of its members the WTO "promotes, monitors and adjudicates international trade" (Goldstein 378) in order to establish a free trade system. It covers every field of economic and social endeavors, including: textiles, agriculture, clothing, telecommunications, banking, government purchases, food sanitation regulations, services, industrial standards and intellectual property. (Americanlands) Although this organization is seemingly beneficial, like all

Economic cooperation by various countries is a necessity as opposed to a choice in this globalized world. Many economic partnerships are regional, and all regions on the planet have their own. Examples include the European Union, the Economic Community of West African States, the North American Free Trade Agreement and the Association of Southeast Asian Nations. There are others that are not regionally based an example being the agreement established by the African Growth and Opportunity Act, which ties the United States and several African governments. The United Kingdom is not immune to these cooperative measures. This paper shall look at the structure.

The World Trade Organization (WTO) is the international body whose objective is to ensure open trade and liberalize world trade across its member countries. The organization is the successor to the General Agreement on Tariffs and Trade (GAAT) that was remarkably successful in the liberalization of trade. WTO was formed as a response to calls for a stronger multilateral organization that would not only monitor trade but also resolve trade disputes. The launching of WTO symbolized a new era in international trade and relations. The body’s Secretariat is located in Geneva Switzerland, and it began its operations in January 1995.

Secondly, the governments of the present have accepted the idea that economic openness and business liberalization is a must for any economy to thrive on the global platform. Thus treaties such as ASEAN, WTO, NAFTA etc have helped break much of the global trade barriers that had previously existed and have subsequently contributed to the formation of a global, interdependent and highly sophisticated “World Economy”. As a result of these treaties, governments have customized their trade policies in accordance to them. One of the most significant events of this phenomenon was the introduction of China into the World Trade Organization (Bransetter, 2008, p.655-659).

     The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business. The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. The World Trade Organization exists to ensure that trade between nations flows as smoothly, predictably and freely as possible. It provides and regulates the legal issues which governs world trade now .

□ The World Trade Organisation (WTO), through which international trade agreements are negotiated and enforced