Trade
Introduction
The World Trade Organization is a unique global institution. An organization that deals with international trade issues between the nations of the world. As the organization itself states; The main objective is “… to help manufacturers of goods and services, exporters and importers in their work” (Messerlin 2004). In other words, the World Trade Organization was created by the various nations of the world to organize and improve the international trade operations of its members. The World Trade Organization is currently made up of 159 member states that have decided to open trade on the basis of previously agreed trade negotiations. When a member state proposes a new trade agreement, it is the responsibility of the World Trade Organization to help all its members reach agreement on the trade invoice in order to achieve the best results for their benefit.
Methodology
This research will use a quantitative method. Quantitative research will help in analyzing data using software such as spss. It will also help in getting graphical representation to be able to know whether the establishment of a trade agreement has benefited the countries involved. The method of data collection would include interviews. The people who would take part in the research are ten people each from Canada, the U.S., China, and Mexico. They would be able to answer structured interview questions on how they view the trade agreement between the countries. The data would then be analyzed, and the finding presented.
Literature Review
According to Patrick (2016), it is important for countries that are engaged in a trade agreement to provide favourable conditions for business. Some countries are affected by war which makes it hard for the countries involved in the trade to export their goods there. It also makes it hard for them to foster future agreements; an example is the trade war between China and America; both of them are competing on other markets (Low, 2016). So, there is a need for a positive environment. Some countries have strict policies that do not favour foreign investors. This includes the policy of not allowing people to pollute the environment.
Discussion
The WTO would be a better option for China, the U.S., Mexico and Canada. This is because WTO, supports trade agreements and intellectual property principles, the World Trade Organization also acts as a police force to ensure that each member country complies with the pre-established trade rules set out in the various agreements and contracts that all members of the nation accepted. To explain this, this means that each country’s trade activities are regularly reviewed and revised by the World Trade Organization to ensure that each member country acts in the context of its trade negotiations (Low, 2016). If a Member State violates or negotiates the parameters set in previous trade negotiations, selected executive members of the organization and the nations affected by the damage will be offended and incur substantial costs in that country. The organization’s main goal will be to maximize the benefits of international trade for each nation.
Conclusion
NAFTA came into existence in 1994 under the Clinton administration. The purpose of the agreement was to strengthen trade in North America between Canada, the United States, and Mexico. It also sought to eliminate trade barriers between the three parties, as well as most taxes and duties on goods imported and exported by each party. Trade Representative Robert Lighthizer says the Trump administration’s goal is to end trade deficits, closures and job losses by campaigning for tougher workers and environmental protection in Mexico. A favourite of Canada and a thorn in the American wood industry.
References
Low, P., 2016. International trade and the environment. UNISIA, (30), pp.95-99.
Messerlin, P.A., 2004. China in the World Trade Organization: antidumping and safeguards. The World Bank Economic Review, 18(1), pp.105-130.