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International Trading Agreement

Trade pacts are often politically controversial because they can change economic practices and deepen interdependence with trading partners. Improving efficiency through “free trade” is a common goal. Most governments support other trade agreements. The International Monetary Fund (IMF) is an international organization established on July 22, 1944 at the Bretton Woods Conference and established on December 27, 1945, when 29 countries signed the IMF agreement. It originally had 45 members. The IMF`s stated objective was to stabilize exchange rates and support the reconstruction of the global payment system after World War II. Through a quota system, countries introduce money into a pool from which countries with payment imbalances can temporarily borrow funds. Through these and other activities, such as monitoring the economies and policies of its members, the IMF is working to improve the economies of its member countries. The IMF sees itself as “an organization of 188 countries working to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and promote sustainable economic growth and reduce poverty.” The WTO also relays disputes between Member States on trade issues. When one country`s government accuses another country`s government of violating world trade rules, a WTO panel settles the dispute. (The panel`s judgment may be appealed to an appellate body.) If the WTO finds that the government of a Member State has not complied with the agreements it has signed, the member is obliged to change its policy and bring it in line with the rules.

If the member finds it politically impossible to change his policy, he can offer compensation to other countries in the form of lower obstacles to other goods. If it decides not to do so, other countries may obtain WTO authorization to impose higher tariffs (i.e. “retaliation”) on products originating in the Member State concerned because they have not complied. A series of course modules intended to serve as educational materials that can help lawyers, civil servants, academics and business people in developing countries understand the basic rules and jurisprudence on dispute resolution in the field of international trade, investment and intellectual property. Within the framework of the World Trade Organization, different types of agreements are concluded (most often in the case of new accessions), the terms of which apply to all WTO members on the most favoured basis (MFN), meaning that the advantageous conditions agreed bilaterally with a trading partner also apply to other WTO members.

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