Effective trade policies

The private sector’s development is strongly influenced by applicable trade policy, thus finding the right trade policy is vital for the private sector’s successful performance. Trade policy regulates the flows of goods and services produced by local businesses across the borders of different countries. Initially, trade policy was used as a tool to protect local producers from foreign goods and services by strictly regulating, or even forbidding, imports. But after World War II a less protectionist approach of international trade was adopted, giving rise to freer movement of goods and services. In 1947, 23 countries signed the General Agreement on Tariffs and Trade (GATT) aiming for freer trade among the member states. During the following years, the number of member states significantly increased, and more trade concessions were successfully negotiated. In 1995, countries decided to institutionalize these negotiations and founded the World Trade Organization (WTO). Currently, most of the countries worldwide are members of this organization, which demonstrates their preference to the policy of freer trade across borders.

Related Subject(s): Economic and Social Development

Countries: Myanmar