5. WTO, SEM and Customs Unions

What is the WTO

World Trade Organisation

International organisation that regulates world trade

166 member states (98% of world trade)

What does ideal trade look like to the WTO

Non-Discriminatory

Free from Barriers

Predictable

Promoting Fair Competition

Beneficial for Developing Countries through Special Provision

Roles of the WTO

Set and Enforce Rules on International Trade

Resolve Trade Disputes

Provide a Forum for Negotiating Trade Liberalisation

To Monitor Further Trade Liberalisation

To Increase Transparency of the Decision Making Process

To help developing countries fully benefit from global trade

Cooperate with other major economic institutions

Features of the Single European Market

Free movement of goods, services, capital and labour between nations

Administrative provisions, laws and regulators are approximated between member nations. This could mean some laws are better suited to some countries and not so much for others

Competition policy is common across the whole of the EU

There are common external tariffs

What is a Customs Union

Countries in a customs union have established a common trade policy with the rest of the world. For example, they might use a common external tariff

Common markets establish free trade in goods and services, a common external tariff and allow free movement of capital and labour across borders

Other Features of a Customs Union

Safety measures for imported goods, such as for food, are common across all members

There are common customs rules and procedures

There is a structure for the combined administration of the nations within the Customs Union

There is a common trade policy. This helps to create and guide trading relationships with countries and blocs outside the Customs Union