Major trade organizations are:
Following the World War II, free trade movements were introduced. In 1947, the GATT (General Agreement on Tariffs and Trade) was formed, with a focus on tariff reduction related negotiations to reduce import competition. Member nations of the GATT took a more formal approach by establishing the World Trade Organization.
The North American Free Trade Agreement (NAFTA) is another well known treaty, comprising the US, Canada, and Mexico. In 1958, the Japan External Trade Organization (JETRO) was formed to promote trade between Japan and the rest of the world. Its aim was to help Japanese companies maximize their export potential at a global level.
Several factors have increased the importance of trade organizations. Increased outsourcing, globalization, industrialization, and growth of multinational corporations have ignited its growing role in today’s world of economic uncertainties. Efforts to remove trade barriers are an integral part of trade organizations. Trade organizations also started the trade justice movements to improve and develop social, labor and environmental standards.
The challenges of trade organizations are to: