2. MEANING
International trade policies are rules and regulations established by countries for
their trade relationships.
- They govern the flow of goods, services, and investments across borders.
- These policies can include measures like tariffs, quotas, and trade agreements.
- The aim is to ensure fair and balanced trade while protecting domestic
industries and consumers.
- International trade policies play a crucial role in shaping global trade
relationships and economic growth.
3. Policies
- Tariffs: taxes or duties imposed on imported goods, making them more expensive and less competitive in
the domestic market.
- Quotas: limits on the quantity of certain goods that can be imported or exported.
- Subsidies: financial incentives given by governments to domestic industries to help them compete globally.
- Trade agreements: formal agreements between countries to reduce barriers to trade, such as tariffs and
quotas.
- Non-tariff barriers: regulations, standards, and licensing requirements that can restrict trad
- Free trade agreements (FTAs): aim to reduce or eliminate tariffs and other trade barriers between
participating countries, promoting increased trade and economic integration.
- Export subsidies: financial incentives provided by governments to domestic companies to encourage
exporting and make their products more competitive in international markets.
- Import restrictions: import bans, import licensing requirements, or strict regulations on certain goods to
protect domestic industries or address health, safety.
4. Trade remedies: These measures, such as anti-dumping duties and countervailing duties, are used
to address unfair trade practices, such as selling goods below cost or receiving subsidies, that harm
domestic industries.
Dumping regulations: These policies aim to prevent companies from selling products in foreign
markets at prices lower than their production costs, which can harm domestic industries.
Trade facilitation measures: These policies focus on simplifying and streamlining customs
procedures, documentation requirements, and other administrative processes to make trade more
efficient.
Trade sanctions: These policies involve restricting or prohibiting trade with certain countries or
entities due to political, economic, or security reasons.
- Preferential trade agreements: These are trade agreements that give certain countries or groups
of countries preferential access to each other's markets, often through reduced tariffs or other
trade benefits.
5. World Trade Organization (WTO):
- Oversees and regulates international trade policies.
- Facilitates negotiations on trade agreements among
member countries.
- Provides a platform for resolving trade disputes.
- Promotes transparency and fair trade practices.
- Works to ensure smooth and predictable trade flows.
6. European Union (EU):
- Implements trade policies for member countries.
- Promotes economic integration within the EU.
- Facilitates trade among member countries.
- Ensures a level playing field for trade.
Association of Southeast Asian Nations (ASEAN):
- Promotes regional economic integration.
- Facilitates trade and cooperation among member countries.
- Works towards a single market and production base.
- Enhances competitiveness in the global market.
7. TRADE BARRIER
- Tariffs: Taxes imposed on imported goods, making them more expensive.
- Quotas: Limits on the quantity of goods that can be imported.
- Embargoes: Complete bans on the import or export of specific goods.
- Subsidies: Financial assistance provided to domestic industries, giving them an advantage.
- Technical Barriers: Regulations and standards that make it difficult for foreign products to meet
requirements.
Non-Tariff Barriers: Other restrictions like licensing requirements or excessive paperwork.
- TRADE AGREEMENTS
-Deals between countries that aim to promote and facilitate trade.
- often involve reducing or eliminating trade barriers like tariffs and quotas.
- Cover various aspects of trade, including goods, services, and intellectual property.
- Examples include NAFTA, CPTPP, and the EU's single market.
- These agreements can benefit economies by expanding market access and promoting economic
growth.
8. TRADE DISPUTES
- Arises when countries have disagreements over trade policies or practices.
- involve issues like unfair subsidies, intellectual property rights, or trade barriers.
- Disputes are often resolved through negotiation, mediation, or through the dispute settlement
mechanism of organizations like the WTO.
- Retaliatory measures like tariffs or trade restrictions may be imposed during a dispute.
- Resolving trade disputes is important for maintaining a fair and stable global trading system.
TRADE LIBERALIZATION
- promotes free trade by reducing tariffs, quotas, and other trade barriers.
- aims to increase market access and promote economic growth.
- encourages competition, innovation, and specialization among countries.
- can lead to lower prices, greater consumer choice, and increased efficiency.
- often achieved through trade agreements and negotiations between countries.
9. Globalization has had a significant impact on trade. Here are some key points:
- increased the interconnectedness and interdependence of economies worldwide.
- It has facilitated the flow of goods, services, and capital across borders.
- expanded market opportunities for businesses, allowing them to reach a larger customer
base.
- led to the emergence of global supply chains, where different stages of production take
place in different countries.
- increased competition among businesses, driving innovation and efficiency.
10. CONCLUSION
Global Impact: Shapes worldwide economic interdependence.
Global Economic Integration: Drives interdependence among nations, impacting economies on a
global scale.
Policy Control: Governs international trade through protective and liberalizing measures.
Trade Agreements’ Reach: Influence market accessibility, tariff regulations, and fair trade
principles.
Contemporary Issues: fair trade, global effects of trade, and the equilibrium between economic
growth and social welfare.
Future Trajectories: Shaped by technology, geopolitics, and sustainability, aiming for an inclusive,
transparent global trade structure.
