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nafta vs eu

Satisfactory Essays
The World Trade Organization (WTO) is the global international organization dealing with the trading rules between nations. The WTO agreements, negotiated and signed by the world’s trading nations.It provides a forum for governments to negotiate trade agreements and settle disputes. WTO agreements which are negotiated and signed by the world’s trading nations, provide the legal ground rules for international commerce. They are essentially contracts, binding governments to keep their trade policies within agreed limits. The goal is to help producers, exporters, and importers conduct their business fairly, while allowing governments to meet social and environmental objectives ,at the same time.Trade relations often involve conflicting interests and hence needs certain guidelines written in WTO agreements for the settlement and to ensure that trade flows as smoothly, predictably and freely as possible.
The most common trade agreements are concluded in order to reduce tariffs, quotas and other trade restrictions. Various trade agreements are classified on the basis of number and type of signatories i.e. bilateral and multi-lateral , by sophistication i.e. (EU) and North American Free Trade Agreement (NAFTA) , All agreements concluded outside of the WTO framework are called preferential . These are also known as regional trade agreements (RTA).
The WTO also provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for settling disputes arising from their application.
The two main functions of WTO are : it oversees the implementation, administration and operation of the covered agreements ; and It provides a forum for negotiations and for settling disputes. Reviewing and prop...

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...ant reason for the formation of Free Trade Agreements and the (EU) is to ensure there is labialization in the business world and especially among the involved nations. They have also been able to achieve since the parties involved are few and belong in the same region. It is therefore easier to access them and have the negotiations without problems and they have no desire of engaging in multilateral agreements as the take long and difficult procedures in operating them. The organizations have also to ensure that they have policies that will not only enhance economic growth but also strengthen the organizations themselves. They should however come up with ways of liberalizing the trade sectors so that not only the member parties to benefit but even those outside should have an influence. They should also work to improve on the policies that promote democracy for all.