IN this second part of our series of articles on the WTO, we will discuss the principles of the multilateral system governing trade in goods and services. The WTO and the ASEAN. Last October 7,leaders of the ASEAN signed a plan to transform the region into a giant free trade zone similar to principles of the European Union. ASEAN member countries also subsequently signed various trade agreements with China, Japan, Korea and India. Amid these developments, it is now more important for the Philippine trading community to understand how a free trade system works and the principles governing such trading system. The same principles apply for the World and the regional trading blocs such as the European Union, the North American Free Trade Area and the ASEAN Free Trade Area. In addition, as the WTO agreements cover a wide array of activities e. Under the WTO, member countries must not discriminate against any of their trading partners. Under the The clause, if one country grants special rates to another, it must do the same to system other countries. This concept likewise applies to trade in services and in the protection of trade property rights. There are, however, certain exceptions to the concept of trade without discrimination. In particular, the System agreements allow countries to form regional trading blocs e. AFTA, European Union and NAFTA to provide special privileges for trade in goods and services among member countries within the bloc. Likewise, special market access may be given to developing countries. Organization illustrate, while tariff rates must uniformly apply to all importations regardless of origin, exceptions are allowed in case of: Please refer to previous articles on trade remedy measures dated March 17, and May 25, Protection only through Tariffs. This principle provides that protection of domestic industries and markets must be made only through customs tariffs and not principles other commercial measures. This is to make the protection transparent and clear and to promote system access and export competition. Prior to the WTO, countries were allowed to provide export subsidies and import restrictions e. Under the new system, subsidies and quantitative restrictions are no longer allowed and non-tariff barriers are to be removed through tariffication, i. To illustrate, the Philippines previously imposed quantitative restrictions on numerous agricultural products. Thus, importations made outside of the quota are subject to higher rates while importations within the quota are given lower rates. The reduction or removal of trade barriers tariff and non-tariff clearly promotes trade among trading partners. Among the barriers to trade are customs tariffs, quotas and import bans. Since the creation of GATT intrading had been numerous rounds of trade organization to address the issue of trade barriers. As a result of these negotiations, tariff rates have continuously gone down. In contrast to developed countries, developing countries are, however, allowed to gradually reduce their tariff rates for a longer period. In recent years, the discussion on trade barriers has included the subject of intellectual property and services. A parallel development in the Philippines is the gradual opening up of the services sector. In the last decade, among the liberalized industries have been insurance, banking and retail. These industries now allow foreigners to engage in similar services in the domestic market. Predictability and Fair Competition. A stable, predictable and transparent rule on trade in goods and services is one of the requirements for trade under a multilateral trading trading. When a country agrees to open its market, it binds itself to that commitment. Hence, if it agrees to a ceiling for tariff rates on trade articles, it cannot unilaterally increase its rates beyond the ceiling without attracting reciprocal action from other countries. The WTO system therefore seeks to promote fair trade among trade countries even if it allows countries to maintain tariffs and exercise measures to the domestic world under limited conditions. The author is an international trade and customs specialist, and a licensed customs broker. He is trading a partner of the law firm of David Leabres Uvero Gaticales Sto. For your comments, he may be contacted at agaton. Your email address will not be published. Sign me up for the newsletter! Home About Us Cargo Transport Directory Customs E-Library Updates for Customs E-Lib Subscribers Contact Us Archives Sitemap. Principles of the principles system 2. Principles of the world system 2 Posted by Admin on October 13, 0 Comment. Be the first to leave a reply! 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GATT and WTO - Social Studies
GATT and WTO - Social Studies
4 thoughts on “Principles of the trading system world trade organization”
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