International Commercial Law: WTO and Arbitration in Australia

LAWS20062 INTERNATIONAL
COMMERCIAL LAW ASSESSMENT 2
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Table of Contents
Introduction......................................................................................................................................3
QUESTION 1..................................................................................................................................4
Discuss the history and role of the World Trade Organization (WTO), and the strengths and
weaknesses of the WTO..................................................................................................................4
QUESTION 2................................................................................................................................10
Discuss the advantages and disadvantages of arbitration, and explain the benefits and the costs of
resolving an international commercial dispute by arbitration in Australia....................................10
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14
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Introduction
Globalisation plays a significant role in the expansion of business as due to globalisation, the
market of the whole world is considered as a single marketplace. This helps the organisations in
expanding its business beyond the national boundaries and extending the business of the
organisation in different nations. As the organisation operating in different nations may perform
such activities or adopt such practices which are prohibited under the law, this requires the
authorities which oversee such illicit activities and practices of the organisations. This led to the
establishment of the intergovernmental organisation, World Trade Organisation (WTO) which is
regulating the activities relating to international trades. This assignment includes the role played
by the international organisation, the World Trade Organisation along with the strengths and
weaknesses of the organisation. As while operating in the international market, the organisations
may get into a certain dispute which becomes difficult to resolve within the different legal
framework of different nations. In regards to this, a number of conventions or agreements is
made between the authorities or the government of the nations by which the disputes of the
organisations are resolved. Different resolution systems are established which aims at resolving
the international issues or disputes which also includes arbitration system as well.
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QUESTION 1
Discuss the history and role of the World Trade Organization (WTO), and the strengths
and weaknesses of the WTO.
World Trade Organisation holds a significant role in International Trades. This organisation is
considered as an intergovernmental organisation which was officially established under an
agreement, Marrakesh Agreement on 1st January of the year 1995 which was signed on 15th April
in the year of 1994 by the Governments of 124 nations. World Trade Organisation was
established and replaced GATT (General Agreement on Tariffs and Trade) which was
commenced on 1948. It is considered to be one largest multi-national economic organisation in
the whole world.
History of World Trade Organisation
As World Trade Organisation is considered to be the successor of GATT (General Agreement on
Tariff and Trade) which was established in the year of 1948, the organisation was expected to
replace the GATT and to be considered as International Trade Organisation. At the times of
liberalisation, General Agreement on Tariff and Trade proved to be effective, however, till the
late 1980s, there was a requirement of stronger and more effective organisation for controlling or
regulating the trade or business in the international markets and resolving the issues or disputes
facing the organisation in international trading. The establishment of GATT was made in order
to govern the international trade until the World Trade Organisation is established as GATT was
merely an agreement and it was considered as provisional. This agreement evolved over 47 years
in order to become a global trade organisation which was accepted in approximately 130
countries. Such development in GATT was the result of negotiating rounds, various
arrangements and supplementary codes, reports of panels established for resolving the issues and
the decisions of the council.1
As the negotiation ended in 1994, all the modifications in the original GATT which was made
before the commencement of Uruguay Round were named as GATT 1947 and the modifications
or the arrangements made in the Uruguay Round were classified as GATT 1994 and also
developed dozens of agreements for merchandise trade. For the establishment of World Trade
Organisation, GATT 1994 plays a significant role and is considered to be a vital part of the
agreement of WTO. The agreement of WTO was signed by different nations of the nations and
made sure that the trade policies of the nations are consistent with rules of WTO and this
agreement was signed for civil aircraft, bovine meat, dairy product and government procurement
at first instance.
Role of World Trade Organisation
1 World Trade Organization. The WTO Agreements. Cambridge University Press (2017).
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