Challenges for the global trading system are many. Several agreements and reforms have been introduced over the years to analyze, which policy suits the best for the economies. The article below highlights the challenges faced by economies around the globe.
As per reports published by the World Trade Organization or the WTO, trade has grown manifold due to the introduction of the multilateral trading system.
However, there are certain challenges for the global trading system.
Challenges faced by the global trading system:
One of the main challenges encountered is that there has been growth in trade(by the introduction of the multilateral trading system) but the benefits of this have not been made accessible to all alike.
In addition to the unequal distribution of benefits among people, another area posing a challenge is agricultural trade liberalization. This area, in particular has been quite challenging and very limited could be achieved for the betterment of this segment.
Trade barriers also prevail in trade pertaining to labor intensive manufactures.
Another challenge looming large is the integration of the economies of the developing countries into the global trading system, in a way, which will prove to be beneficial for them. It should also fan the development as well as growth of the aspiring nations.
Striking a balance between the regional trade agreements, the bilateral trade agreements and the multilateral trading system poses to be another challenge for the trading system worldwide.
Bettering the DSM or the Dispute Settlement Mechanism.
Striking a balance between trading activities as well as the environmental challenges.
Making the norms pertaining to service trade stronger.
Setting equilibrium between trade and energy.
The need of the hour:
What is needed urgently is that the developing economies and the economies undergoing transition especially in the Asia Pacific areas need to coalesce with the global trading model without further marginalization. The varied benefits of globalization can be availed only if the policies pertaining to trade reforms in these economies are backed by supportive policies in the economies.