Impact of WTO on Globalization Trade Policy
World Trade Organization (WTO), found in 1995 and headquarters is in Geneva, has its clearly main purposes since its beginning that to promote economic and trade development all over the world. Up to the end of 2008, there are more than 135 members in the organization. In particularly, with the expansion of globalization trade, international business is more often than any time in the history. As one of the most crucial carrier of economic globalization, WTO establishes a set of international trade rules focusing on the liberalization, which play a strong role of encouraging and guiding in the process of economic globalization ...view middle of the document...
The trade policy regulations of different member countries must be transparent (Wallach, 2002). Through these, WTO can supply strong policy assure for forming an opening international market with fair competition and transparency principles.
In the aspect of specific global trade, WTO makes out rules mainly on tariff and non-tariff measures to ensure the normal goods flow within different countries. WTO commits rules on reduction of tariffs and tariff ceilings of different products. Non-tariff measures are not allowed to use widespread. For instance, usually, a member country shall not have the right of prohibiting or restricting import or export goods. Implementation of such non-tariff measures have a clear prerequisite, and can only be implemented through the provided procedures. WTO sets out the conditions and procedures for concrete implementation (Hoekman, 2002). For example, a member can raise tariffs or quantitative restrictions to protect their domestic industries from the impact of import surges. If encountering the balance of payments difficulties, the country may also take measures to reduce imports. Meanwhile, there are detailed provisions on the conditions and procedures in some related agreements when taking such actions.
To ensure the continuity of competitive opportunities, WTO is strongly against unfair trade practices, and provides measures for the protection of fair trade. For example, if a member of country provides subsidies to its export or production, or a company through lower product prices to unreasonably dumping, the members that are adversely affected, can take measures to offset the impact of unfair trade practices (Bhagwati, 2004).
In international trade, there are sometimes disguised barriers to trade, such as the provisions of unnecessarily high standards on product quality or performance, or overestimate the value of imports to impose unreasonably high tariffs, or by other means weakening the competitiveness of imported products. WTO has a clear preventive measures and provisions for these acts. WTO Agreement also set up trade rules in service business and has developed standardized basic rules for intellectual property protection.
Meanwhile, all of these areas have been implemented in a common unified framework through security, dispute settlement and trade policy review mechanism to ensure protection of the rights of the member states. At the same time, their obligations are ensured to be fulfilled.
E-commerce rules in globalization trade
Currently, e-commerce provides strong technical support for economic globalization continuing to expand. Developed from information technology and network technology e-commerce expands the connotation and extension of the world market and changes the traditional way of trading. Not only the 24 hours continuous trading for accelerate the information transfer and cash flow in international trade, it more simplifies international trade procedures and process and reduce...