Beschreibung:
<jats:p>The world trade liberalisation has been the major concern to
almost all the international communities since very long due to the
extensive trade restrictions imposed by the developed and industrial
countries. These restrictions caused to create a very tough
protectionist economic environment for all the countries [SESRTCIC
(1995) and Chaudhary (2001)]. Pakistan is one of the founder members of
the General Agreement on Tariffs and Trade (GATT) since 1948 and a
signatory of Uruguay Round of Multilateral Trade Agreement (MTA) with
Word Trade Organisation (WTO). The Agreement made significant progress
in three major areas i.e. market liberalisation which could add
approximately one percent of world real GDP (US$212-274 billion) and 10
percent to world trade upon full implementation of the Agreement,
strengthening of rule and institutional structure, particularly the
creation of WTO, which could decide on dispute and impairment of trade
rules and principles, and integration of new areas into the multilateral
trading system such as general agreements on trade in services (GATS)
and trade-related intellectual property rights (TRIPs), trade-related
investment measures (TRIMs) and the traditionally sensitive and
contentious sectors (agriculture, and textile and clothing) [Abidin
(1994); GATT (1994) and IMF (1994)]. The classical economists explained
the welfare benefits of globalisation (by the specialisation and
widening of markets through trade). Trade can bring settlement by
allowing countries to take benefit of their comparative advantage,
harvest the profit of scale economies and ensure competition, greater
variety and potentially, more stable markets and prices. The free
movement of capital directs resources towards their more productive
use.</jats:p>