The absence of currency-related trade policies in the World Trade Organization (WTO) and its future inclusion

Kartika, Dwintha Maya (2015): The absence of currency-related trade policies in the World Trade Organization (WTO) and its future inclusion.

Abstract

It is unanimously agreed that currency policies of the countries, particularly their exchange-rate values, have a significant impact on trade as it alters exports and imports between one country and its trading partners. In spite of this, the rules of currency seem to be absent in World Trade Organization (WTO) framework. The main purpose of this paper is to analyse the reasoning why such important rules are missing out in the multilateral trade sphere. It is divided into few sections; the first one examines currency manipulation and the significance of it for international trade, the second one analyses the existence of institutional gap between WTO and International Monetary Fund (IMF) in addressing the problem of currency manipulation, the third explains the reinforcement of status quo at multilateral sphere based on neorealism framework, and the last one will provide some insight on the possibility of inclusion of currency chapter at free-trade agreement level.

• Item Type: MPRA Paper
• Language: English
• Keywords: WTO; IMF; International trade; Currency; TPP; free trade agreements; trade; currency manipulation; multilateralism; China
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F3 - International Finance > F31 - Foreign Exchange; F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission; F - International Economics > F5 - International Relations, National Security, and International Political Economy; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F53 - International Agreements and Observance ; International Organizations; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F55 - International Institutional Arrangements

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