ADDRESSING THE CHALLENGES IN THE CONTEMPORARY INTERNATIONAL TRADING SYSTEM: THE LIMITATIONS OF GENERAL AGREEMENTS ON TARIFFS TRADE (GATT) AND GENERAL AGREEMENTS ON TRADE IN SERVICES (GATS)

Abstract

International Trade was designed with the objective to foster the economic growth of nations and improve the standard of living of the people. The rules of international Trade have over time formed the framework on which the global trading system is run. The global trading system has survived the Cold War, the World War, the Middle East uprising, the Libyan Crisis and most recently, the COVID- 19 pandemic and has evolved into the complex system that it is today. Commercial transactions have indeed gone beyond the traditional face to face level to electronic commerce. Today, goods and services are exchanged over the internet and this is commonly referred to as digital trade. Digital trade which is simply defined as economic transactions over the Internet employing ICT means has taken over every sector of the economy right down to retail commerce and materially transformed the way trade is conducted. This has led to a number of concerns on the continued practicality of GATT and GATS, and the continued sustenance of International Trade as well as guiding principles on digital Trade. As trade relations evolve and expand beyond the scope of GATT and GATS, it has become imperative to review the provisions of GATT and GATS in order to ensure their relative usefulness in contemporary international trade.