Unilateral Trade Agreement

Existing unilateral export preferences were streamlined in 1968 at the United Nations Conference on Trade and Development (UNCTAD) with the introduction of the Generalized Preference System (GSP) and GATT articles were amended to allow discrimination. Since then, several other programs have multiplied. For example, in 1975, the EU granted the former colonies of Africa, the Caribbean and the Pacific (ACP) unilateral preferences (the Lomé Conventions) which were rationalized in 2000 under the Cotonou Agreement. The United States has adopted acts such as the Caribbean Basin Initiative (CBI) against certain commodity groups and countries. In addition, the GSP has increased over the past decade with the EU`s „GSP-plus“ and „Everything but Arms“ (EBA) initiative to least developed countries (LDCs) or the African Growth Opportunity Act (AGOA) granted by the United States to African countries. A unilateral agreement is a kind of free trade agreement. Another type is a bilateral agreement between two countries. This is the most common because it is easy to negotiate. The third type is a multilateral agreement.

It is the most powerful, but it is a long time to negotiate. In a unilateral trade agreement, the agreement is imposed on a country, organization or group by another country, organization or other. The action or decision is therefore taken by one of the countries, groups or organizations. In this regard, the unilateral agreement benefits a country, an organization or a group. Trade restrictions, minimization of imports, increased import duties and duties, etc., are imposed on this group, country or organization. The least developed countries (LDCs) are therefore more cautious about the power imbalance of industrialized countries in such a unilateral trade agreement. A definite prognosis is that international trade agreements will continue to be controversial. The logic of formal trade agreements is that they reduce penalties for deviation from the rules set out in the agreement. [1] As a result, trade agreements make misunderstandings less likely and create confidence on both sides in the sanction of fraud; this increases the likelihood of long-term cooperation. [1] An international organization such as the IMF can further encourage cooperation by monitoring compliance with agreements and reporting violations. [1] It may be necessary to monitor international agencies to detect non-tariff barriers that are disguised attempts to create barriers to trade.

[1] A trade agreement signed between more than two parties (usually neighbouring or in the same region) is considered multilateral. They face the main obstacles – to content negotiation and implementation. The more countries involved, the more difficult it is to achieve mutual satisfaction.