How are trade agreements evaluated for compliance?

Trade agreements are evaluated for compliance with international trade laws and regulations through a process that assesses various aspects of the agreements. Some key factors considered in the compliance evaluation of trade agreements include market access, tariffs, non-tariff barriers, and dispute resolution mechanisms.

Market Access

One of the primary aspects evaluated in trade agreements is market access. This involves assessing the extent to which the agreement allows for the free flow of goods and services between the participating countries. Evaluators look at whether the agreement provides fair and equitable access to each other's markets without discriminatory practices.

Tariffs

Tariffs play a significant role in trade agreements evaluation. Evaluators examine whether the agreement addresses tariff reductions or elimination to promote trade liberalization. They assess whether the agreed-upon tariff levels are being implemented as per the agreement.

Non-Tariff Barriers

Non-tariff barriers, such as quotas, licensing requirements, and technical barriers to trade, are also scrutinized for compliance. Evaluators ensure that the trade agreement's provisions on non-tariff barriers are being adhered to and that barriers are not being used as a means to restrict trade unfairly.

Dispute Resolution Mechanisms

Lastly, trade agreements are evaluated for compliance with regard to dispute resolution mechanisms. Evaluators assess whether the agreed-upon mechanisms for resolving disputes between countries are functioning effectively and fairly. They look into whether disputes are being addressed promptly and fairly within the framework of the agreement.