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Explain The Roles Of Regulatory Agencies And Trade Agreements In International Trade

The EU has developed a single market through a standardised system of laws applicable in all Member States, which guarantee the free movement of people, goods, services and capital. It has common policies in the areas of trade, agriculture, fisheries and regional development. A single currency, the euro, has been introduced by 16 Member States known as the euro area. The EU has developed a limited foreign policy role, as it is represented at the WTO, G8 summits and the United Nations. It adopts legislation in the field of justice and home affairs, including the abolition of passport controls between many Member States. Twenty-one EU countries are also members of NATO, with non-NATO member states Austria, Cyprus, Finland, Ireland, Malta and Sweden. India is a founding member of gatt and succeeded the WTO. India`s participation in an increasingly rules-based system of international trade governance aims to enhance stability and predictability, which can lead to increased trade and prosperity. As a member of the WTO, India automatically uses most-favoured-nation and national treatment for its exports to all WTO countries. In 2005, India made the necessary legislative changes to implement the wto`s standard intellectual property legislation, although it had shown initial resistance. The question of whether the WTO is fulfilling its duty and mission is the subject of ongoing debate.

Yet the WTO currently has 104 members and twenty observer governments. WTO member states account for nearly 97% of world trade and 98% of world GDP. As soon as the twenty observer governments become members, it is possible that the WTO will monitor the entire world economy. What began in Geneva in 1947, with twenty-three nations focused exclusively on tariff reduction, has grown into a truly global organization devoted to agriculture, labour standards, environmental issues, competition and intellectual property rights. Regional trade agreements are reciprocal trade agreements between two or more partners (nations). Almost all countries are part of at least one ATR. Under an ATR, “countries come together” and form an international community that facilitates the exchange of goods and services between them. For example, the North American Free Trade Agreement (NAFTA), adopted between Canada, the United States and Mexico, facilitates trade between these countries by reducing and eliminating tariffs.

The Association of Southeast Asian Nations (ASEAN) presented below provides for the free movement of trade, services, labour and capital in ten independent member states to ensure a balance of power for China and Japan. . . .

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