Multi Trade Bodies Confuse

Countries and Jurisdiction

Amit K 13124
Ishan Tupe 13135
Sonija D 13166
Umang Arora 13169
• With the increase in global trade, various
bodies to regulate the flow of capital and
goods.
– WTO
– UNCTAD
– ITC
– FITA
– OECD
– NAFTA, MECSOUR and other RTAs, FTAs etc
• The different economic structures and
regulations among nations have been primarily
responsible for emergence of these bodies.
• Bodies like WTO, ITC, UNCTAD, NAFTA, MIGA
etc aim at working cohesively and attaining
goals of Economic Development, Fair Trade
Practices, Trade Agreements, Economic Co-
Operation for the development of LDC,
developing countries, etc
• However, due to existing political-economical
scenario, the frameworks of these organizations
are not applicable effectively to all nations.
• Confusion due to violation of some rules in
WTO which may be acceptable in some other
trade organization/agreement.
• For e.g. Korea-Japan RTA, Agricultural Imports
>10%
• RTA vs WTO
– Certain restrictions on imports and exports
– WTO guidelines for RTA

• NAFTA
– Between US CANADA & MEXICO
– However, NAFTA has not always worked out in practice as had originally been
envisaged. For Canada the dispute settlement mechanisms have not proven to be
as nearly watertight as hoped, especially in the case of the on-going dispute with
The United States over softwood lumber. In essence NAFTA imposes oversight
over whether the three signatories are properly applying their domestic laws. In
the case of softwood lumber, The United States chose to ignore the findings of an
extraordinary appeal of a NAFTA panel decision, ending any illusion that the
NAFTA process could ultimately hold sway over domestic sovereignty.
• The NAFTA rules of origin are complex and
there is evidence that some importers find it
easier to pay the now-typically low MFN tariffs
than to comply with the paperwork required
for tariff-free entry.