Trade Agreement Today
The majority of the commercial import and export actions deal in the agreement signed by different organization and individuals. The contracts, if not compliant with the international laws of import and exports, are subjected to face dire consequences. The international businesses carried on the sea waters are legally stipulated by the business relationships of the countries. All the countries in the world have marine based business laws which establish the rules and regulations of the dealt products’ import and export. The owners of the businesses have to follow the protocols in their commercial purposes. These protocols are based on the treaties signed by the countries of the world which are very much influential on the import and export business scenario. Below are the details of certain trade organizations of the world formed by the countries of the world to facilitate trade on comer on the international waters based on their signed treaties:
The World Trade Organization or the WTO
It is important for you to know that the World Trade Organization or the WTO is not any organization of the global platform of import and export. Instead, it is a global body helping to regulate the effectiveness of the trade and commerce laws of the other organizations. WTO is the pillar behind the free flow of the trade between the countries, and no transaction can pass through its scrutiny. It is an independent organization which influences the other trade organizations to follow the set rules of the international business. It keeps in mind the fact that if a certain kind of trade hampers the economy of any country or its people, that trade shall not take place practically. The agreements of the World Trade Organizations are signed by the representatives of all the major countries of the world including the third world countries’ representatives.
The North American Free Trade Agreement or the NAFTA
NAFTA agreement was signed between the countries Mexico, Canada and the United States of America. According to the treaty, these countries work with each other by phasing out of the tariffs on particular products or materials and also decrease the limitations on the services of trade on foreign-based investments. NAFTA has made the platform of trade in between these countries easy which resulted in the closeness of Canada and the USA.
The European Union
The European Union’s treaty is beyond simplicity. The organization has a direct effect on the export and import businesses carried on the between the member countries. The union has devised out a singular economy with a single kind of currency which has simplified the trade relations between the member countries. The union has also ruled out the regulation on the traveling of people, exchanging of the capital, services, and products of these countries. The trade relations of the EU countries, the third world countries as well as the European Union has been effectively smoothened by the rules and regulations of trade set by the European Union.