Explain The Roles Of Regulatory Agencies And Trade Agreements In International Trade
Given that international trade is the main burden of local discontent with globalization trends and that recent changes by the Trump administration have called into question the viability of such trade agreements, there has been a clear tendency to use international trade to manage regulatory barriers to economic development. This paper will address this recent trend in international trade towards enhanced regulatory cooperation through the creation of formalized transnational regulatory authorities, such as the U.S. Regulatory Cooperation Body. S.-EU, which was discussed in the TTIP negotiations, and similar in the agreement between Canada and the EU and the Council of Regulators between the UNITED States and Mexico. A review of informal transnational regulatory networks resulting from trade integration shows that fragmentation has created un centralized channels of dialogue between different stakeholders to influence national regulation, particularly in the areas of environmental regulation, energy and sustainable development. The paper argues that this trend has led to the institutionalization of regulatory cooperation through preferential trade agreements rather than multilateral agreements. Transnational regulatory networks and more formalized means of regulatory cooperation have influenced the executive, which has traditionally been responsible for negotiating trade agreements, from the negotiator to a «regulatory partner,» acting not only to reduce trade barriers, but also, in particular, to streamline regulatory standards that affect input costs throughout the supply chain. With today`s negative climate surrounding globalization and recent U.S. initiatives to reduce the role of agencies in regulatory implementation, this trend could take another turn — a trend that centralizes regulatory decisions within the president and his cabinet.
The WTO has a set of rules to prohibit «trade-related investment measures» (DTUs), including many ways in which national governments could attempt to develop industrial and investment policies to support the development of industries and businesses. WTO rules on «trade-related intellectual property» (TRIPS) offer unprecedented protection in the areas of copyright and intellectual property rights. This increased the role of trade in the post-World War II period. This has been followed by the phasing out of customs barriers in both developing and industrialized countries, due in part to autonomous policies and partly to the series of multilateral trade cycles under the GATT.