Saltar al contenido

An Agreement Signed Willingly Between The Importing Country And The Exporting Country

2 diciembre, 2020

The WTOs agreements, which were negotiated and signed by a large majority of world trade economies and ratified by their parliaments, are at the heart of the multilateral trading system. The WTOs procedure for the settlement of trade disputes under the dispute settlement agreement is essential to the application of the rules and, therefore, to the fluidity of trade. Governments argue disputes in the WTO if they feel their rights are being violated by WTO agreements. Specially designated independent expert judgments are based on the interpretation of each member`s agreements and obligations. The system encourages members to resolve their differences through consultation. If it turns out that this has not been successful, they may go through a step-by-step procedure, which provides for the possibility of a decision by a panel of experts and the possibility of appealing the judgment for legal reasons. Confidence in the system is confirmed by the number of cases brought to the WTO since the creation of the WTO compared to the 300 disputes that have been dealt with throughout the GATT (1947-1994). The result is a more prosperous, peaceful and responsible economic world. Decisions taken in the WTO are generally taken by consensus among all members and ratified by members` parliaments. Trade disputes are integrated into the WTO dispute settlement process, which focuses on interpreting agreements and commitments and how to ensure consistency in members` trade policy. This reduces the risk of disputes spreading to political or military conflicts.

The WTO`s Trade Policy Review Mechanism aims to improve transparency, improve understanding of trade policies followed by WTO members and assess their impact. Many members see evaluations as a constructive feedback on their policies. All WTO members must be subject to regular review, with each revision including reports from the relevant member and WTO secretariat. In addition, the WTO regularly monitors global trade measures. Initially launched in the wake of the 2008 financial crisis, this global trade monitoring has become a regular function of the WTO, with the aim of highlighting the implementation by WTO members of both trade-enhancing and restrictive measures.