Abstract
The Multilateral trading system has improved trading conditions across the globe. Nevertheless, this has not extended to few of the nations. Reduction of tariff, removal of trade barriers, globalization and liberalization in trade are some of the aspects, which have been highlighted due to the introduction of multilateral trading system.Objectives of Multilateral Trading System:
The Multilateral Trading system was propounded so that countries across the globe could equal rights pertaining to the trading activities. In fact, the multilateral trading system focused on non-discrimination. Every country, irrespective of the fact that it was rich or poor had to be rendered equal treatment. Many trade agreements were formulated so that global trade could be enhanced between multiple nations.The Multilateral trading system was introduced so that the different trading economies are able to withstand shocks in the economy. There was another motive behind the implementation of the multilateral trading system. It was to prevent financial confusions between nations.
Hindrances in Multilateral Trading system:
Despite such efforts there are several lacunae, which remains to be repaired in the trading system involving multiple nations. In fact, these are the challenges faced by the economies around the globe.Some of the hindrances, which make the ride rough for multilateral trading system, include the following:
Even though there has been globalization but the benefits of globalization and such trading systems have not been able to reach all and sundry. This indicates unequal distribution of benefits. In some countries trade barriers have still not been completely lifted, which makes trade stringent in these nations. It has also been observed that owing to developing free markets, there are certain rich nations who have benefited at the cost of the poor countries.
