INTERNATIONAL TRADE MEANING AND POLICIES

1. INTERNATIONAL TRADE
MEANING AND POLICIES
MAIRA HUSSAIN
2357026
LLM CAL

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.

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.