|Multilateral Trade Relations|
09 Dec 2009 05:24 PM
The term multilateral trade negotiations is defined as the negotiations between General Agreement on Tariffs and Trade (GATT) Member nations. The multilateral trade negotiations will lead to multilateral trade agreements.
GATT was formed on the basis of the multilateral trading system which functions as an organization to ensure all nations are equally treated and foster freer trade in the globalising world.
The World Trade Organisation (WTO), in which Malaysia is a Member, has now replaced the GATT as the administrative body since 1995. The WTO remains as the sole multilateral forum that deals with multilateral rules on trade in goods and services. Its main focus is to ensure that trade flows as smoothly, predictably and freely as possible. The WTO fully takes into account the interests of developed, developing, as well as least developed countries.
Among the benefits of the WTO trading system, include:
- Handles trade disputes constructively;
- Reduces costs of living through freer trade;
- Provides more choice of quality products;
- Raises trade incomes;
- Stimulates economic growth; and
- Encourages good governance.