While a lot of the action in the international import export business is in contracts and agreements between businesses or individuals, the terms of these deals may be influenced by legal stipulations that govern trade relationships. Most countries have laws which define how products may be imported or exported, but some also are ruled by global treaties. These may have an effect on your international import export company, too.
Though far more than just a trade treaty, The EU does affect international import export businesses, especially those that operate within European union countries. The EU created a single economy with just one currency, which simplified economic transactions. Additionally, it eliminated regulations on movements of people, products, services, and capital within its member countries. It's simplified trade both between EU countries and between EU and non-EU (third world) countries.
The North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA) which went into effect in , 1994, is a local contract between the USA, Canada, and Mexico. These 3 countries agreed to phase out tariffs on material goods and to decrease limitations on trade in services and on foreign investments. NAFTA has considerably simplified global trade between these 3 countries, with the connection between Canada and the United states becoming particularly close. Many international import export companies in the united states trade primarily with Canada.
The ASEAN Free Trade Area
The Association of Southeast Asian Nations (ASEAN) is similar to the EU in that it has a large number of signatories and it created an economic and geopolitical organization. It was founded to encourage economic improvement among its member states. Recently, ASEAN has discussed a free trade area among its member countries, which Is a prelude to more complete economic integration. Tariffs between member states are lowered, though they keep the right to charge non-ASEAN countries what ever tariff percentage they want.
Other Trade Agreements
Bilateral and multi-lateral trade agreements between specific nations or between these larger groups of nations are becoming increasingly more common as the global economy becomes more. Many of these new trade agreements include reduced or free trade between the signatory nations. The goal is to make international import export freer and at the same time more lucrative for everybody concerned.
The WTO is not an international export import organization, but instead an international body which aids to set the ground rules for global trade. The WTO is devoted to keeping trade flowing as freely as possible without undermining national government authorities or endangering people or the environment. The organization's agreements are discussed between member countries and have been signed by the majority of countries on the planet.
The WTO also offers a trade dispute resolution process.This list of trade agreements and treaties just scratches the surface of the number of this kind of treaties in existence. Make sure you review the ones that might effect your international import export business!