Regulation of International Trade - Assignment Example

Advice to Bohemia whether it can challenge the green fish Act under GATT 1994 law and provisions GATT 1994 Article XIII permits quantitative restrictions for industry protection purposes except in times of crisis. The article further states application of prohibitions and restrictions on import and export between member countries and to certain commodities However, the use of prohibitions and quotas has been emphasized by GATT. The largest number of prohibitions has been introduced on the grounds of environmental protection, and public health, and safety considerations. Therefore in this case slug the vacuum method of fishing in water of Bohemia affects aquatic lives by interfering with natural habitat of aquatic lives. This raises an important issue in the environmental concern. Prohibitions and laws of environmental concerns, health and safety reasons are made either based on unilateral often under multilateral agreements, treaties and conventions. By the fact slug vacuuming in waters of bohemia interfere with aquatic lives then it implies with that if interfered even with the endangered aquatic species. Seabed is home of many aquatic lives. Marine conservation and international free trade reconciles with dolphins with tuna and sea turtles with shrimp. During the 1990s, the World Trade Organization (WTO)-GATT provisions, multilateral efforts promote conservation of endangered marine species through trade sanctions against other governments. These acts of unilateral economic coercion were held to be discriminatory tactics done in unfair restraint of international trade. But in so doing, the WTO findings aroused the ire of environmentalists worldwide. These findings, by the WTO became portrayed not as decisions upholding free trade, but as mandates against marine conservation and environmental protection. Even so, this denial of lawful permissibility to use unilateral economic coercion to protect endangered species internationally does not signal the demise of national efforts to conserve living marine resources. Rather, these WTO findings point up the manner in which potential trade and marine conservation disputes should be handled, i.e., through means of peaceful settlement. The key to future international marine conservation relies on a multilateral rather than a unilateral approach. The United Nation Environmental programme (UNEP) is the international body for overseeing on implementation of environment multilateral agreements, treaties and conventions. The year 2004 Word environmental day, the theme was wanted seas and oceans dead or alive. Thus, environmentally conscious governments, should continue to encourage global adoption of marine conservation policies without interfering with international norms and standards of international commercial transactions For the above reasons waters of Bohemia unlike waters of Atlantis runs at a risk of losing seabed green fish among other important aquatic lives including the endangered and undiscovered marine lives. Now through comparing the GATT 1994 law and Green fish preservation act, it should come to a point of solution. GATT law states on restrictions and quotas based on environmental concerns while the act calls either for ban of fishing, licensing or green fish friendly based. Green Fish Act 2004 seems unchallengeable from numerous treaties and conventions that supports it. 1 To the fact that there are national, regional and international treaties, conventions and agreements concerning on water resources it should be applied imposition of environmental concerns by GATT 1994 while the act calls either for ban of fishing, licensing or green fish friendly labels. To the fact that there is national regional and international treating, contentious and agreement concerning on water resources it should be applied imposition of environmental friendly methods of fishing should be applied. For instance, as stated by the green fish preservation act 2004, the use of green friendly label on all sea slug produce is required. Principles of Free Trader and Comparative Advantages Economic integration between nations has some advantages and disadvantages. However, climatic variations and geographical occurrence of resources facilitate for free movement of goods produced within the co-operating nations. Where free trade exist a country is easily acquire what it cannot produce. Customs unions permit specialization on what one nation along the lines of co-operative advantages, implying more effective use of resources through importation and exportation basis. The absence of internal tariffs allows an advantage along the line of trade and specialization in production of goods in the international markets. The expansions of market also permit economies of scale to be utilized unlike where the small size of a local market hinders the production of goods below the optimum exploitation of resources. Therefore, expansion of market in free trade allows for increased initiatives to invest in larger scales and in a wider market. 2 Another advantage of free trade is increased competition in a larger market. This allows for the increased rate of industrialization. This is because the argument is based on exploitation of resources of comparative advantage is of more importance in production of better goods. 3 However, it is hard to achieve and maintain economic integration. Arising issues in economic or political fields or environmental concern hinders economic integrations between nations. At times, free trade benefits between the co-operating nations may not balance in terms of import- export basis. In such a case one nation may be benefiting more than the other. According to Livingstone (1988) Governments musts pay regard to the interest of their own citizen and if the government feels unfair trade it may politicize the integration. Another demerit of free trade is that it calls for protection of infant industries. The new and developing industries in a country may be unable to face the competition in free trade. This is because; the already fully established industries in free trade stand a better chance of winning in the market. Thus in such a case the governments need to protect its arising investors from the emerging competition in free trade. However, over the past few decades growing trade deficits have shown that our opposition to fast track to unfair trade agreement was justified. Regional trade agreements help or hindrance to the multilateral trade system Regional trade agreements linkages are self evident area in surveillance of multilateral trading system. Regional trade agreements are mainly based on neighbourhood of countries across the world. In such a case countries have in exchange almost similar goods in the market. Owing to the varying occurrence of natural resources in geographical regions, that obstructs multilateral trade systems. However, the market extent of the world should be global. Regional trade agreement interferes with the trends of global market. It is mainly because regional trade markets support only inter-regional supply demand relationships only. At times, regional agreements hinders an individual country from fetching for better markets else where in the world. The world's numerous bilateral trades were brought together in General Agreement on Tariffs and Trade (GATT). Under GATT, countries meet periodically to negotiate tariffs reductions that are advantageous to all members. However, in addition to GATT, we have several regions in the world have their own tariff agreements. 4 Multilateral trade systems are hindered by some disparities such as languages and cultural variations between various trading partners. Some regional trade agreements therefore arise as for the reasons of such barriers. However, some regional trades are set up for the purpose of discouraging or limiting trade. In this way regional trade agreements hindering the multilateral trading systems. At different levels from the cultural variations the market economy becomes more stable regionally. In some cases, we have trade regions integrating in trade with other trade regions. This in turn promotes even further for the multilateral trading systems. In turn, the level of trading becomes even stronger that individual country trading with one another. We have trade agreements getting further to the economics blocks made by trade agreements in various parts of the world. At times, when we have regional trading, some goods become common in the market. This is brought about by the occurrence of similar phenomena such as climate or natural occurrences of resource. In such a case, the regional trade agreements lose some of its meaning. Therefore, multilateral trade system is strengthened, since the trading region has to obtain its goods from elsewhere outside the region. 5 Therefore, from the above gathered views it can be said that regional trade agreements to some great extent hinders multilateral trade and to some extent promotes helps in strengthening. References Bhagwati, J.N (1978): The New International Economic Order. The North-South Debate, Cambridge, Mass; MIT Press. Good, W. (2003): Dictionary of Trade Policy terms, WTO and Cambridge University Press Miller, W. (1988): Economics, Scribner Educational Publishers, London. OECD (2003): Liberalizing Trade in Textiles and clothing a survey of quantitative Studies, OECD, Paris Palletiere, D. (2004): The Political Economic, the World Economy, vol.25, No7, pp1019- 1037. NORDQUIST, J.: (1996): NAFTA and GATT: environmental and economic issues: a Bibliography: Santa Cruz, Reference and Research Series. 1996. (Contemporary social issues: a bibliographic series; no. 43) WTO, (1994): Environment background. The Doha, Negotiating Mandate on Meas Read More