Multilateral trade

by Zeyang Wu

Multilateral trade is the trade that three or more than three countries, for the sake of mutual payments balance and the agreement based on multilateral settlement of trade.

The reason why it appears is due to the wrong way between the two countries trade with each other or the price is not quite supply that cannot balance the import and export, foreign exchange balance difficulties occur. They need a third country or more countries participating in the agreement, the three countries to establish or multinational trade in so that import and export each other to achieve a basic balance.

The most important purpose of the multilateral trading system is to make the trade flow as free as possible without the negative effects. On the one hand means to eliminate barriers, on the other hand, to ensure those individuals, companies and the government to understand the world's trade rules, and make them believe that the policy will not ha

ppen suddenly change.

Since the agreement was drafted and signed on the basis of a lot of discussions and debates in each trading country, one of the most important functions of WTO is to provide a place for trade negotiations.

WTO is an important aspect of the work of the dispute settlement. Trade relations often involve conflicts of interest, contracts and agreements often need to be explained, including those that have reached a negotiated contract and agreement. The most harmonious way to resolve these differences is by establishing a neutral program on the basis of the agreed law. This is the purpose of the dispute settlement mechanism in the WTO agreement.

resources:
"Multilateral trade agreement". How to Export. Web. Mar. 2016