With trade turning international and borders virtually disappearing, there was a dire need to have some trade regulations so that the system can be balanced and things can flow smoothly. This is why there are several organizations performing jobs that include creating trade regulations and making sure they are implemented. In simple words they provide best practices in trade.
With time, trade regulations also rose as a law field educating people about the trade regulations, their use and practice. The field tells people about the unfair practices so that they learn about competition and other trade related issues.
Currently there are several organizations playing such roles and making trade regulations. Two of the most famous and well-recognized organizations include:
- World Trade Organization (WTO)
The WTO is an organization that aims to supervise and liberalize trade among nations. Initiated on January 1st, 1995, it is the most well recognized trade regulations organization in the world with 158 member states. However, due to its decisions the organization often falls victim to criticism from different sectors. Nonetheless, its role and importance cannot be neglected.
The organization’s main objective is to give countries a framework that they follow so that they can prosper. It appreciates free trade among nations and has a set of rules and regulations in place that have to be followed by all member nations. As per the rules, all countries are to be treated equally and be given the same rights so that they can utilize their resources to move ahead in the race.
The WTO also gives its members the right to settle disputes through a proper channel in case a problem arises. With its headquarters in Geneva, Switzerland, the organization has its presence around the world and has over 600 employees working for it.
- Organization for Economic Co-Operation and Development (OECD)
The organization initiated in 1948 mainly to administer the Marshall Plan to reconstruct Europe that was suffering from the aftermaths of World War II. The organization’s head quarter is stationed in Paris, France with membership of 24 countries.
Its main objective is to help improve countries’ economic conditions through trade. The organization defines itself as a forum of countries committed to democracy and the market economy, providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies.
It creates policies to help countries achieve higher standards so that their economic conditions can improve. The organization also publishes several hundred books every year and conducts meetings regularly to discuss the changing economic scenario so that policies can be created in the light of them.
There are many benefits of having such trade regulations in place. They are advantageous for both developed and developing countries as they secure everyone’s rights believing in equality.
Due to its policies, small and developing countries like Bangladesh are able to send their goods to far off countries in Europe and America. It also ensures that competition is fairly handled with no one getting robbed of their due share.
Trade regulations also allow for a smooth flow and results in less disputes because there is a set of regulations that nations follow in case any such problem arises. Many people credit such organizations for growing peace as they help improve relationships among countries.