World Trade Organization Free Trade Agreements

The General Agreement on Trade in Services (GATS), which also contains a general obligation for the MFN, provides for a departure from the liberalisation of trade in regional services agreements, provided that barriers and other restrictions on trade in services are removed immediately or within a reasonable time frame and that the agreement provides significant sectoral coverage13. Finally, the contracting parties must inform the Services Trade Council that such an agreement exists and, if implemented over time, report regularly to the Council14.GATS also provides for a derogation from the parties` full labour market integration agreements, provided that the agreements exempt citizens of the parties from the residence and work permit requirements15. to form a multinational agreement that provides for an international agreement establishing a free trade area between cooperating states. Free trade agreements, a form of trade pacts, set tariffs and tariffs on imports and exports by countries, with the aim of reducing or removing barriers to trade and thereby promoting international trade. [1] These agreements “generally focus on a chapter with preferential tariff treatment,” but they often contain “trade facilitation and regulatory clauses in areas such as investment, intellectual property, public procurement, technical standards, and health and plant health issues.” [2] The final phase of accession includes bilateral negotiations between the candidate country and other members of the Working Group on Concessions and Commitments on the Level of Tariffs and Market Access to Goods and Services. The new member`s obligations will apply equally to all WTO members, even if they are negotiated bilaterally, in accordance with the usual rules of non-discrimination. [95] For example, following WTO membership, Armenia proposed a 15% tariff on access to its market for products. With collective agreements that are ad valorem, there are no specific or compound rates. In addition, there are no tariff quotas for both industrial and agricultural products. [97] Armenia`s economic and trade performance growth has been seen since its first review in 2010, particularly after the 2008 global financial crisis, with an average annual GDP growth rate of 4%, despite some fluctuations. The Armenian economy has been characterized by low inflation, lower poverty and substantial progress in strengthening macroeconomic stability, where trade in goods and services, which accounts for 87% of GDP, has played an increasing role. [98] Economist Ha-Joon Chang himself argues that there is a “paradox” in neoliberal beliefs about free trade, because economic growth in developing countries during the 1960-1980 period was stronger than in the 1980-2000 period, although its trade policy is now much more liberal than it was.

In addition, there are also research findings that show that new countries only actively remove trade barriers once they have become significantly richer.