When Does Preferential Trade Agreement Occur

One of the fundamental principles of trade liberalization is non-discrimination under Articles 1 of the GATT, II of the GATS and IV of the TRIPS Agreement. This principle, the most-favoured-nation (MFN) society, means that WTO members must not discriminate between their trading partners. So if a member grants a favor to one member, he must grant the same favor to the others. However, Article XXIV(4) to (10) of the GATT was introduced as an exception to this principle. It allows for the establishment of an agreement among Members where by which a Member may grant more favourable trade terms to other parties to the Arrangement and not to other WTO Members. The enabling clause, which aims to increase the participation of developing countries, has also been introduced as an exception to most-favoured-nation treatment for developing countries. It allows for the establishment of preferential trade agreements between these countries. A preferential trade area (also known as a preferential trade agreement, ATP) is a trading bloc that grants preferential access to certain products of participating countries. This is done by lowering tariffs, but not by abolishing them completely. A PTA can be set by a trade pact.

This is the first step in economic integration. The boundary between a PTA and a free trade area (FTA) can become blurred, as almost all PTAs have the primary objective of becoming a free trade agreement under the General Agreement on Tariffs and Trade. It must be recognized that one of the reasons for the introduction of Article XXIV of the GATT, seeing the increasing liberalization of trade and trade flows between WTO members, is now fulfilled. The results suggest that global preferential agreements have increased and that APTs have created more trade than they have diverted. The spread of the PTA today justifies this claim. In East Asia, for example, it is argued that free trade agreements have strengthened trade between companies despite concerns about restrictive rules of origin. It is clear from this definition that the current wording of the provisions of the PTA in the WTO system is not only an exception to a trade principle (the most fiscal rule), but rather contradicts the basic principles of the organization and seems to make the rules of the PTA superior to those of the WTO. That is true; The SO are a creation of the WTO, but their operation makes them comparable to the WTO and even almost superior. PTOs can now be considered “multiplied WTO” in different parts of the world.

They sometimes take more restrictive measures than WTO rules. One of the most egregious examples is found in the TRIPS measures more taken in some bilateral agreements between developed and developing countries. Developed countries negotiate agreements with developing countries that impose much stricter intellectual property rights (IPR) requirements than the WTO TRIPS Agreement. If the WTO does not address such situations, the TRIPS Agreement could soon be replaced. It is important to act on these issues as soon as possible, as the delay in the multilateral DOHA round of negotiations plays a role in the spread of THE TRUMP. However, it should not be understood that trade among developing countries was not encouraged. My point is that these countries must place their development goals above their regional commitments. Developing countries need mechanisms, foreign direct investment (FDI) for the exploitation and processing of their natural resources. I do not see how another developing country will help in this case.

Developing countries should negotiate trade agreements with developed countries that are able to invest in exploitation and processing in developing countries. The WTO can help create an agreement on trade in natural resources that protects investors, human rights and the environment, and prevent leaders of developing countries from transforming the principle of permanent sovereignty over natural resources into the principle of personal sovereignty over natural resources. .