International Trade Overview What is international trade law?

International trade law regulates the global exchange of goods and services. For a long time, most trade agreements were bilateral, (meaning between two nations). However, with the growth of global trade, countries have increasingly used multilateral treaties, such as when nations within a particular region sign an international trade agreements. Current examples include the North America Free Trade Agreement (NAFTA) and the South Asia Free Trade Agreement (SAFTA). The multilateral trade agreement with the most members (signatories) is the General Agreement on Tariffs and Trade (GATT). The GATT comprises several rules on international trade, and is now part of the World Trade Organization (WTO), which is not just an agreement, but is also an international organization.

What is the WTO?

The WTO is the only global trading organization and includes members from nearly all nations. The WTO also includes members from customs unions, such as the European Union The principal goal of the WTO is free trade. WTO members promote free trade by lowering or eliminating trade barriers (such as tariffs). The WTO serves three important functions: 1.Formulating trade rules and policy, 2. Providing a forum for negotiating lower trade barriers, and 3. Settling trade disputes between members.