Impact of International Trade and Investment Agreements on Sovereign Control

Business Law

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International trade refers to expansion of markets for goods as well as services at
international level. it is important for businesses to gain competitive edge in the corporate world.
There are number of reforms and conventions which provide framework for carrying the
business activities for companies outside domestic boundaries (McGovern, 2018). Investment is
again a thing which can be seen as a part of international trade. There are various types of
agreements that are made for international trade and investment. Also, these can be creating
positive as well as negative outcomes for the countries which may experience such trade or
investment. This report comprises of critical evaluation of the impact of such agreements on
losing the sovereign control by the states on trade and investment in their own territories.
MAIN BODY
World Trade Organisation is the only global international organisation which deals with the
rules of trade between nations. This association has been formed with an objective to assist the
producers or manufacturers of goods or services, exporters and importers to carry their business
smoothly. It develops various agreements which are signed by different nations so as to form
commercial relations between them and to boost the economies of the countries which have
signed the agreements. It is a system which is approaches to settle the trade disputes by abiding
by the rules made by WTO.
On the other hand, a treaty in literal meaning has been defined as covenants, pacts or protocols in
the form of agreements between states and/or international organisations. It is the main and
primary source of international law. This involves negotiation for making better relations with
the nations involved in such treaty. It is also ratified from time to time which is a power as
conferred by any international treaty. These are the basis of most parts of modern international
law. The main aim is to fulfil need of States by obtaining the approval to deal with common
concern and to enhance mutual relation with each other. These create international rules or
standards which are followed by States and other actors in international community (Jones and
Kierzkowski, 2018).
The main motive of WTO agreements and international trade and investment treaties is to
help the nations to grow. Both of these provide a framework which should be followed by the
nations involved. Another objective is to provide a standardise and uniform base for all the