Question

Discuss the importance of the General Agreement on Tariffs and Trade , World Tourism Organization and measures such as the North American Free Trade Agreement in making sure that trade is fair in the international environment. Also discuss the impact of such agreements in the Tourism sector

Answer 1

General agreement on Tariffs and Trade was an agreement signed between around 23 nations in 1947 for the main purpose of promoting fair international trade through the ideas of barriers to trade reductions, without discrimination on the path of liberalisation and globalisation. It was particularly established after second world war meant to drive the process of international economic growth under the vibrant banner of free and fair international trade.
Under GATT, around 9 rounds of negotiations were held, all of them centred around discussions among countries on the topics surrounding tariff reductions and other international unfair trade practices like anti- dumping that threatens the very idea of fair trade. GATT was superseded by World Trade Organisation in 1995, a major international organisation set up to monitor the trends of international Trade.
World Tourism Organisation is an United Nations organisation (UNWTO) is the forerunner looking over the promotion of international tourism. Since tourism is attributed to be a major contributor to world trade, UNWTO engages in several policies and partnerships meant to promote practices and procedures that lead the way for fair international trade.
North American Free Trade Agreement (NAFTA) is hailed as by far the largest trade agreement between nations such as United States, Canada and Mexico (replaced by United States-Mexico- Canada agreement in 2018) in easing and promoting fair international trade practices between member countries. Its importance in looking if trade is fair becomes clear through its polices like elimination of tariffs, provision of equal treatment to members (Most Favoured Nation) and speedy procedures to settle trade dispute issues.
Impact of these agreements in Tourism sector
According to UNWTO's report, Tourism accounts for 40 % of international trade in services and 6% in world trade marking it to be among the fasting growing sectors. Moreover, it contributes to 9% of the world GDP. Looking at these points, it is imperative to know the impact of these trade agreements and organisation in tourism sector.
All the above agreements along with promoting fair international trade acknowledge the role and importance of tourism sector in achieving development goals through trade. Although GATT's negotiations were meant for trade in goods, its impact future course on agreement relating to services could not be ignored. It is important not to forget that GATT marked the advent of fair trade agreements which would help in promotion of fair trade even in services in the future. While UNWTO's Global code of Ethics for Tourism have been set to promote and broaden the socio economic contribution of world tourism and work towards neutralising the not so positive strands.
NAFTA by promoting fair international trade practices in two developed and one developing nations is set out to promote and increase the role and capacity of tourism between the member countries.