Global trading system has ensured that all the nations affiliated to the World Trade Organization or WTO are able to enjoy the same benefits. With the opening up of economies around the globe, trade has helped in making countries prosper. The write up below throws light on some of the aspects of the global trading system.
The first time when the world got to see non-discrimination pertaining to trade on a �multilateral� basis was when General Agreement On Tariffs and Trade or GATT was introduced. As per the GATT, equal rights pertaining to accessibility to the market was rendered to as many as 23 original signing countries.
As of now, the WTO, the successor of GATT has several countries affiliated to it. The same principles continue to govern the Global trading system.
Globalization has become the mantra of trade and tariff around the globe. Capital flux as well as international trade has become central to process of globalization. It is a well-known fact that international trade has become part and parcel of the global trading system.
With removal of trade barriers around the globe, most of the economies have opened up to other countries. It has been observed that majority of the countries have increasing number of trading partners with every passing day. Not only that the global trading system has also contributed in the growth of GDP s or gross domestic products and various other macroeconomic indicators existing in countries around the globe.
There are many loopholes existing in the global trading system. The reason being that it is often seen that the benefits of globalization are not accessible equally in all sects of people around the globe. Problems like unemployment and trade restrictions in certain countries still prevail thereby restricting performance of some of the nations under the global trading system.