THE ROLE OF THE WORLD TRADE ORGANISATION IN RESOLVING TRADE DISPUTES UNDER INTERNATIONAL LAW

THE ROLE OF THE WORLD TRADE ORGANISATION IN RESOLVING TRADE 

DISPUTES UNDER INTERNATIONAL LAW

BACKGROUND TO THE STUDY

The concept of International Trade has been of immense importance in the existence of the nations of the world because no nation is completely self-sufficient. In addition, the needs and wants of people in all parts of the world are better served by exchanging commodities and services1. Trade increases the standard of living for all countries. For some countries, foreign markets take a third to a half of the total output and the standard of living depends crucially on the international division of labour that foreign trade permits2. However, there are opinions to the effect that international trade has negative effects in the standard of living of the nations of the world, and consequently, trade barriers are necessary to protect the earth’s natural environment, reduce domestic unemployment and prevent the exploitation of the World’s impoverished workers3. International trade has played a critical role in the ability of countries to grow, develop and be economically powerful throughout history. International transactions are becoming increasingly important in recent years as countries seek to obtain the more benefits that accompany increased exchange of goods, services and factors. Little is known about the earliest trade. However, English flint used to make primitive tools, which was widely traded in Europe thousands of years before Christ, and so was the salt from the mines in Central Europe. Moreover, the Egyptians as far back as 3000 B.C ranged far in Africa in search of gold, antimony and slaves. By 1700 B.C, the Cretans traded extensively by sea4. Each sovereign nation is free to establish laws, taxes and regulations governing its own foreign trade. Initially, these nations used certain policy instruments to protect their country and citizens that are players at the international market against certain consequences that might arise as a result of unrestricted trade practices and thereby interfered with free trade. Some of these instruments include: import tariff, export  taxes and subsidies, import quotas, voluntary export restraint, government procurement provisions, domestic content provisions, trade related investment measures and so on5. These measures interfered with free trade. However, in the 19th century, there was an important change in government6 policies towards trade, away from mercantile protectionism, all towards freer trade – fewer  prohibitions and lower duties on foreign trade. Furthermore, after World War II, various circumstances combined to obstruct world trade. The nations found it convenient to agree to rules that limits their own freedom of action in trade matters, and generally to work towards removal of artificial and often arbitrary barriers to trade. Thus in 1947, the major trading countries, initiated comprehensive multilateral negotiations in an effort to prevent a post war contraction of world trade similar to the tariff war of the 1930’s7. The negotiations resulted in the formation of the General Agreement on Tariff and Trade (GATT). The GATT incorporated a code of international trade rules, made provisions for multilateral trade negotiations, established a procedure for adjudicating trade

grievances among members, and provided for the continuing review of actions by member countries.

TOPIC: THE ROLE OF THE WORLD TRADE ORGANISATION IN RESOLVING TRADE  DISPUTES UNDER INTERNATIONAL LAW

Chapters: 1 - 5
Delivery: Email

Number of Pages: 75

Price: 3000 NGN

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