The world has achieved almost more free trade in the next round, known as the Doha Round Trade Agreement. If successful, Doha would have reduced tariffs for all WTO members in general, and the third disadvantage is common to each trade agreement. Some businesses and parts of the country are suffering from the disappearance of trade borders. The basic structure of WTO agreements: like the six main areas, the WTO framework agreement, goods, services, intellectual property, disputes and trade policy reviews. The main drawback of multilateral agreements is that they are complex. This makes them difficult and tedious to negotiate. Sometimes the length of the negotiations means that it will not take place at all. The General Agreement on Trade in Services was created to extend the multilateral trading system to the services sector, just as the General Agreement on Tariffs and Trade (GATT) provided for such a system for trade in goods. The agreement came into force in January 1995. This chapter focuses on the Uruguay Round agreements, which are the basis of the current WTO system. Additional work is also under way in the WTO.
This is the result of decisions taken at ministerial conferences, particularly at the Doha meeting in November 2001, when new negotiations and other work were initiated. (To learn more about the Doha agenda, later) The United States has another multilateral regional trade agreement: the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua eliminated tariffs on more than 80% of U.S. exports of non-textile goods. The fifth advantage is in emerging countries. Bilateral trade agreements tend to favour the country with the best economy. This penalizes the weaker nation. But strengthening emerging markets helps the developed economy over time. The failure of Doha has enabled China to reach a global level of trade. It has signed bilateral trade agreements with dozens of countries in Africa, Asia and Latin America. Chinese companies have the right to develop the country`s oil and other raw materials.
In exchange, China offers loans and technical or commercial assistance. Free trade allows unrestricted imports and exports of goods and services between two or more countries. Trade agreements are forged to reduce or eliminate import or export quotas. These help participating countries to act competitively.