UNILATERAL TRADE ORDER

What is Unilateral Trade?

A Unilateral trade agreement is a commerce treaty that a nation imposes without
regard to others. It benefits that one country only. It is unilateral because other
nations have no choice in the matter.

I’ll make it simple for example there are two persons let called John and Felix,
Felix said i promise to pay you 200 pesos to fix my window, john replied I accept the
offer.

by this scenario you will see felix’s only make promise to john that he will pay the job
once john finish to fix felix windows, but john did not promise anything he only do the
job which is fix the window

I will give you another example Sarah lost his dog, and she make a poster “Lost dog
Golden retriever, Reward 10,000 pesos” and there’s only one promise here which sarah
promise to give the reward to whoever can find her dog. And Alfred see the poster and he
perform, and he find the dog. Sarah need to keep his promise the she will give the reward
whoever find her dog. Sarah give the reward to Alfred.

by this scenario there is only one promise and this mean a Unilateral Trade

MULTILATERALISM: FROM THE GATT TO THE WTO

- Multilateralism in 1990, Robert Keohane defined multilateralism as “the

practice of coordinating national policies in groups of three or more states.

- The dollar became a world currency, backed by two-thirds of the world’s

gold reserve in 1950
- originally, the new international trade regime should have been steered by the
International Trade Organization (ITO), but the US congress blocked instead
they decided to coordinate their actions under the Auspices of the Genral
Agreement on Tariffs and Trade (GATT)

- The GATT exerted influence via a series of multilateral trade negotiations (or
rounds). The first five rounds concentrated on tariff cuts exclusively

The Difference between this two the GATT and WTO

GATT changing WTO

Because in 1980 the Global increase and the GATT cannot support this influx
and new trading challenges there are lot of dispute in other country in terms
of trading

- The most famous multilateral trade negotiations were carried out under the
Uruguay Round between 1986 and 1994.

- Birth creation of WTO

GATT
- Multilateral Treaty
- The participation is a Contracting Parties
 WTO

- Rules of Trade
- The Trade barrier reduce
- Permanent institution made of membernation
- Interm of despute is much more faster and more effective than GATT system
- Member of Trading nation negotiate to WTO that address and contract and
legal framework that conducting Global business. It become faster and faily
as possible as the result the consumer benefit cheaper prices and diverse
supply
-

DEVELOPING COUNTRIES AND INTERNATIONAL TRADE

- The first major change in this state of affairs happened in 1964, when the United
Nations Conference on Trade and Development (UNCTAD) was established with
the joint effort of the developing world. The aim of UNCTAD was to promote
trade and cooperation between the developing and the developed nations.

- A decade later plans for a new international economic order were laid down, with
the multiple objectives of providing preferential access to advanced countries’
markets, renegotiating debt, establishing international commodity agreement (to
stabilize primary product prices),18 providing transfer of technology, and
increasing aid substantially