Unilateral and Bilateral Trade Agreements

Does a trade war benefit economies? Major economies around the world and their trades are based on treaties on which the countries make agreements based on exports and imports. Taking the case of the USA and China, an analysis for the WTO is illustrated. China and the USA are reviewing the trade pacts with each other, owing to a USD 500 billion of trade deficit with China, which the USA wants to address, by planning to reduce the trade to a balance of USD 200 billion within 2020. ¬†Here are a few plans that China and the USA can work…

Public Distribution System: An approach for WTO and World Bank

A public distribution system or PDS in India can be used as a pet project to remove scarcity of food grains almost all around the world. Here is a glimpse of the trade that can happen in the new deals in WTO for a change. Stockpiling for unnecessary reasons is not an agenda, but the distribution is. Procurement, stockpiling and distribution can lead to lesser food scarcity. A report to use and scrutinize. PS: The numbers used are figurative. Basing deals only on the currency factor is not advisable. Procurement can be done based on transportation and freight charges. Public…

The woes and pangs of WTO

Trade Issues in WTO The problems confronting primary exports are manifold. Many extraneous and intraneous factors deplete trade liberalization. A few factors that try to disengage trade are as follows. Steady detoriation for the need of demand based on price elasticity for primary products in the open and international market can be a hinderence to the severe trade measures. Severe fluctuations in terms of trade for primary and secondary products to create price pressure for internal tagging kills the demand for natural and synthetic goods. The growth of substitutes for unnatural product prices in the market can create negative demand…

Trade Rulings in the WTO

A Reference to SEZs or Special Economic Zones in any country Recently, trade barriers and trade embargoes has caused a lot of pain in the world that has drawn an attention to WTO on the trade imbalances of any country. Here are some pointers that can create a new trade path. Compensation for unrelated indirect taxes paid by exporters can have an exemption on imports, higher freight rates, market development costs, for a variation of products across the entire gamut. Basically, it entitles any country to introduce allowances for greater taxes paid, mainly indirect. Duty Drawback System in lowering of…