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International Trade Organizations |
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International trade is basically the selling and purchasing of goods and services among foreign countries. For carrying out the process the countries have to sign a mutual treaty or consignment, for avoiding unnecessary problems. The growth in international trade is one of the most important factors in the soar of a country’s Gross Domestic Product (GDP). For a profitable trading a country should take care of the factors on which the international trade depends on, such as transportation, industrialization, multinational corporations, globalization, modern infrastructure and so forth.
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There are varied international trade organizations which work for proper regulation of trade among different nations. Some of the principle international trade organizations are World Trade Organization, GATT, NAFTA, European Union, MERCOSUR and so forth.
These international trade organizations sketch out proper regulations and parameters on which the trading can be carried out and discontent among countries can be avoided. Another major objective of these organizations is to break down the barriers and persuade the nations to carry out international trade. This is not only beneficial for the respective country but its benefits affect all nations. Varied options for trading are opened by these organizations so that the foreign countries can have fruitful transactions. In addition, these international trade organizations play a major role in decreasing the risk attached to international trade. The countries which want to take the benefits from these organizations should be their member. For better idea about these international trade organizations you can scroll down and read about some of them separately.
World Trade Organization (WTO): It is an international organization which has been formed with an intension to supervise the parameters based on which international trade can be carried out. This organization was formed in the year 1995 for dealing with different rules of international trade. The main objective of World Trade is to bring about prosperity and development in nations by opening varied options for trading with foreign countries. In addition, the international trading should be carried out in a peaceful manner, without discontent in between nations. The five primary principles of World Trade Organizations are reciprocity, safety valves, non-discrimination, transparency and binding and enforceable commitments. In total World Trade Organization encompasses 151 members in total.
General Agreement on Tariffs and Trade (GATT): GATT, a treaty, was formed after the failure of the formation of International Trade Organization (ITO). The main objective of GATT was to break down the barriers to international trade among foreign nations. The ways by which this was achieved was by reducing the tariffs, subsidies and restrictions on trading. The role played by GATT since its inception stage i.e. 1947 has been taken over by the World Trade Organizations in the recent days.
NAFTA: It stands for North American Free Trade Agreement. NAFTA came into existence from 1994 after it was created by the North American Free Trade Agreement and its branches, namely the North American Agreement on Environmental Corporation (NAAEC) and The North American Agreement on Labor Corporation (NAALC). The main members of this organization are Mexico, Canada and United States.
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