Global Trading System


Global trade has an impact on virtually all important aspects of life. With such a powerful impact, global trade can, therefore, be a tool that improves life, especially for third world nations. By simplifying procedures, international trade and the flow of goods can be altered for maximum benefit for all nations.

Need to Change

We have drifted away from ancient laws that impeded trade. Some French laws in the 1600’s-1750 prohibited importation of certain goods. As a result, not only was trade adversely affected but also lives were lost. As such, trade disputes may even lead to death. The cold war put a strain on international trade, and some of its effects are felt even in the present world.

The world trade systems have changed greatly. Many regulations and laws that are unhealthy for trade have been erased. Currently, the world is very conducive for profitable trade systems. Nonetheless, there is still more that can be done to give the international trade a boost if we are to positively transform the entire world.

The World Trade Organization

Formed in 1995, the World Trade Organization closely monitors and regulates trading operations on the globe. It has, over time, developed complex agreements that govern a wide array of trade activities. The agreements deal with numerous aspects of international trade, including banking, telecommunication, industrial standards, government purchases, and many more. There are various aspects of trade that the organization has helped improve. Some of these improvements include:

No discrimination. For better trade, it is important that there are no discriminations. Trade partners should offer a uniform platform for business. Favors such as reduced Customs Duty should be provided without discrimination. However, special agreements can create favorable agreements between friends.

Freer trade. Trading will flow better when trade barriers are lowered. Negotiations have been effective in opening up markets and encouraging trade.

Fair trade. The rules developed by many agreements in global trade systems allow for fair trade. With features of non-discrimination and rational competition, fair trade thrives.

Transparency. It is important for trade to have a clear view of future possibilities. Through transparency, predictability and stability thrive. There is also healthy and fair competition.

Development. The global trade system may be a contributor to development. This is particularly fundamental for developing nations and transition economies. Many developing countries under the WTO, for instance, are gradually taking up the responsibilities required by more developed nations.


All in all, global trade is essential for improved quality of life. Through organizations like WTO, it is possible to streamline international trade operations so that they are profitable for all players involved.