TRADE AGREEMENT: FOCUSING ON FREE TRADE

It cannot be denied that the world economy is currently growing rapidly. World trade is an essential key to encourage economic growth in many countries. International Trade Law has covered an enormous area of regulations which controls transnational trade transaction. The law relates with business trade across borders, which may be traded among countries or international service.

Due to the WTO, this organization appears to plays an important role in global trade. Their objectives are to make trade policies, promote trade liberalization, and create fairness with member countries as well as non-discrimination. 

How does Free Trade relate to International Trade Law?

Trade agreement is brought to apply in international trade, this agreement acts as the international law. Free trade is a commercial agreement between the nations, which is seen as a major trade tool to expand trade opportunities and creating economic partner. Nowadays many countries have entered to trade liberalization in order to increase ability in price competition in their products. The target seems to attempt to get rid of any obstacle in trading system. 

The feature of the term of trade liberalization depends on the agreement of the partners of contract in a free trade zone. So, there are no fix rules in the free trade agreement. However, the attribute of free trade has the same on three basic kinds are:

                1) The objective of liberalized trade is to facilitate commercial and not cause more trade barriers to other nations that are not members.

                 2)  It has to cover international trade enough which is the rule of the WTO in order to prevent and protect the effect of free trade to other countries that are not member countries.

                3) The agreement between the parties will demonstrate that what product has been reduced tax or to open trade with what product and how long in the reduction of tariff.

For these reasons as stated before, the objectives of free trade agreement are to liberalize trade in products and services. Moreover, its purpose is to create conditions for the encouragement of international trade and investment, which means that it attempts to create more open global trading system. Thus, for an overall goal of the opening of free trade zone, the terms of trade liberalization has a direct relationship to international trade by promoting the trade exchange among member countries even more.