The concept of International Trade law is a complicated and cumbersome it is an ever expanding area. The International trade relationship consists of four levels, these are Unilateral measures or it is also known as National Law, secondly bilateral relationships, thirdly Plurilateral agreements and lastly multilateral arrangements like GATT, WTO etc. International Law in simple words can be understood as - appropriate rules and customs used for doing international trade between two or more countries. Keeping the fact in view that transactions between the private sectors of different countries is one of the very vital part of the WTO activities, this branch of Law i.e. International Trade law, has become now a days, very important part of the academic works and study throughout the globe.International Trade law developed from the theories of economic liberalism developed in Europe and then the United States from 18th century onwards. International Trade law can also be understood as – an aggregate of legal rules of “International Legislation “and new lex mercatoria. International legislation refers to International treaties and acts of International intergovernmental organizations regulating relations in International Trade. Lex mercatoria ie- “the law for merchants on land” or can also be said as “any law relating to business”
The most important development in the history of International Trade Law is the establishment of World Trade Organization, a formal International Organization established in 1995. The purpose and the structure of this organization is governed by the “Marrakesh Agreement” which is the agreement establishing the World Trade Organization.
The principle of WTO is – (i) Non Discrimination (ii) market Access i.e. reduction of tariff and non tariffs barriers to trade (iii) balancing trade liberalization and other societal interests (iv) harmony of national regulation for e.g. TRIPS agreement etc. Regarding the Scope of WTO – (i) WTO provides framework for administration and implementation of agreements (ii) WTO acts as a forum also for further negotiations (iii) it also acts as a mechanism for trade policy review (iv) Promote greater coherence among members economics policies.
So far as the International Trade law in reference of the “Goods” is concerned the GATT has been definitely the backbone of International Trade law throughout most of the twentieth century. It contains the rules regarding Unfair trading practices as –dumping, subsidies etc. The general agreement on Trade and Tariffs(GATT) was enacted with the sole purpose to reduce the number of tariffs and trade barriers and also to promote International trade after the World war II . It has served the International community for decades and under the auspices of GATT there have been numerous rounds of trade negotiations on a variety of issues. TIAS1700 and 55 U.N.T.S.194 are the official citations for GATT and its protocol of provisional application can be found at TIAS 1700 and 55U.N.T.S. 308.
REGIONAL TRADE ORGANIZATIONS
Regional trade organizations are multilateral arrangements focused around a geographical area. The goal of a regional trade organization is the liberalization of International Trade between the member nations. Regional Trade agreements are of four types- Free trade areas, customs unions, common markets and economic unions. In the case of free trade areas member countries eliminate tariffs and trade barriers, but maintain individual foreign trade policies. In customs unions, member countries eliminate tariffs and create a common external trade regime. In case of common market, regional integration includes Trade as well as free movement of all aspects of production. There are several regional trade organizations in all areas of the world.
DISPUTE SETTLEMENT
The WTO is the most prominent body for the settlement of the disputes relating to international trade law. This WTO dispute settlement body is in operation since 1995 and is very active and it has dealt with approximately 400 cases till date and it has also lead to amicable solution in hundreds of cases.
INDIAN PERSPECTIVE OF FOREIGN TRADE POLICY
Many foreign countries analyse and see India as a ‘rapid globalizer’ and some foreign countries see it as a ‘highly protectionist’ economy. The reason behind this, probably, is that India has steadily opened up its economy even then its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive.
India was a closed economy till the early 1990s, its average tariffs exceeded 200%, quantitative restrictions on imports were extensive, and its foreign investments were having stringent restrictions. In the 1990s India began to cautiously reform and liberalize only under extreme necessity conditions. Since then, Indian trade reforms have produced remarkable results. India’s trade to GDP ratio has increased from 15% to 35 % of GDP in next 15 years. The economy of India is now among the fastest growing economy in the world. The average non-agricultural tariffs of India have fallen below 15%, quantitative restrictions on imports have been eliminated, and foreign investments norms have been relaxed for a number of sectors. Agricultural tariffs average between 30-40%, anti dumping measures have been liberally used to protect trade and India is among the few in the world that continue to ban foreign investment in retail trade. Although this policy has been somewhat relaxed recently, it remains considerably restrictive. So it can also be said that India retains its rights to protect when need arises.
India is now promoting itself very faster towards becoming more liberal global trade regime, especially in services. It has assumed a leadership role among developing nations in global trade negotiations. India has signed several trade agreements with other foreign countries and is continuously proceeding to seek new ones with other countries.
In the past years the World Bank had been working with the Indian Ministry of commerce in a participatory manner to help the country develop an informed strategy for domestic reform and International negotiations. The World Bank also used to hold a number of workshops and conferences with a view to providing different stakeholders with a forum to express their views on trade related issues.
IITC-INDIA i.e. India International trade centre is most prominent organization responsible for Investment and trade promotion in India and abroad and is dedicated in this work for last seventeen years. The organization provides great support for the Investment, Imports and exports, Industrial as well as Entrepreneurship development. It organizes trade fair, exhibitions, International conferences, Business meetings, delegations, Investment promotions and other trade development activities It also awares the entrepreneurs regarding the latest developments in various fields of Business so as to sustain and compete effectively in the world market. IITC-INDIA plays a vital role for bringing entrepreneurs together from various sectors like – manufacturing, Infrastructure, power, Information technology, telecommunication, Hitech Industry and services from several countries to provide unique opportunities in various fields – technology transfer, joint venture, International collaborations, contract manufacturing, etc. IITC-INDIA is associated and working with various International Organizations, Government agencies, multinational companies, financial Institutions to achieve its goals and to organize various activities.