Mercantilist trade policy has discouraged trade agreements between nations. This is because governments have supported local industry by applying tariffs and quotas to imports, as well as by prohibiting the export of tools, capitalization, skilled labour or anything that could help foreign countries compete with domestic production of industrial products. The foundations of the current global trading system were laid in the years following the Second World War with the creation of the General Agreement on Tariffs and Trade (GATT, the precursor to the WTO). Five years later, new bilateral and regional agreements were concluded. Second, the multilateral removal of trade barriers can reduce political opposition to free trade in each of the countries concerned. This is because groups that otherwise oppose or are indifferent to trade policy reforms could join the free trade campaign if they see the trade agreement as export opportunities to other countries. Therefore, free trade agreements between countries or regions are a useful strategy for liberalizing world trade. International trade agreements have been negotiated and renegotiated for centuries. The history of trade is described by the World Trade Organization (WTO) as a wave of agreements that are going through several setbacks and setbacks. “While the historic trend towards greater openness and deeper rules in international trade agreements – and far from protectionist blocs – progress was not in line,” says a WTO report on the history of trade1. The World Bank`s official goal is to reduce poverty. According to World Bank articles (as of 16 February 1989), all its decisions must be based on the obligation to promote foreign investment, international trade and the facilitation of capital investment. The European Economic Community (EEC) (also known as the Common Market in the English-speaking area and sometimes called the European Community even before it was renamed in 1993) was an international organization created by the Treaty of Rome in 1957.

The aim was to promote economic integration, including a common market, among its six founding members, Belgium, France, Germany, Italy, Luxembourg and the Netherlands. The WTO also relays disputes between Member States on trade issues. When one country`s government accuses another country`s government of violating world trade rules, a WTO panel settles the dispute. (The panel`s judgment may be appealed to an appellate body.) If the WTO finds that the government of a Member State has not complied with the agreements it has signed, the member is obliged to change its policy and bring it in line with the rules.

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