The imf`s role was profoundly altered by exchange rate fluctuations after 1971. It was at this time that the organization began to examine the economic policy of its beneficiaries to determine whether a capital shortage was due to economic fluctuations or economic policy measures. The IMF also looked at what types of government policies would ensure economic recovery. The current challenge is to help countries implement economic policies that reduce the frequency of crises among emerging countries, particularly in middle-income countries, which are vulnerable to massive capital outflows. To meet this challenge, the IMF`s activities have extended beyond exchange rate monitoring to monitor the macroeconomic performance of its member states. Today, it plays an active role in the design and governance of economic policies around the world. This report from the Corporate Europe Observatory and the Transnational Institute examines how law firms, arbitrators and financiers fuel the boom and investment arbitrage. The international investment regime has included countries in agreements that impose high costs on governments if they implement policy changes that affect the profits of powerful companies. Even if policy change, such as environmental regulation, had a positive impact on the country`s citizens, the enormous legal costs to states could reduce the benefits. Not to mention that legal costs are borne by the taxpayers of these countries. The legal industry is particularly benefiting from this process boom by seeking every opportunity to sue governments with different tactics enumerated in the report. (Corporate Europe Observatory und Transnational Institute) Customs unions are agreements between countries in which the parties agree to allow free trade in products within the customs union and they agree on a common external tariff (CET) for imports from the rest of the world.
It is this CET that distinguishes a customs union from a regional trade agreement. It is important to note that, although trade within the Union is comprehensive, customs unions do not allow the free movement of capital and labour between Member States. The customs union of Russia, Belarus and Kazakhstan, founded in 2010, is an example. These countries have removed trade barriers between them, but they have also agreed on some common policies on relations with third countries. While virtually all economists believe that free trade is desirable, they do not agree on the best way to move from tariffs and quotas to free trade. The three fundamental approaches to trade reform are one-sided, multilateral and bilateral. Since the signing of the GATT, several «roundtables» have been held with a view to trade liberalization. The most important of these were the kennedy rounds, which eventually led to a one-third reduction in tariffs and, more recently, to Uruguay`s cycles. Uruguay`s cycles have focused on general barriers to trade and relatively new issues of intellectual property rights, fishing practices and the environment.
The second is classified bilateral (BTA) if it is signed between two pages, each side could be a country (or another customs territory), a trading bloc or an informal group of countries (or other customs sites). Both countries are relaxing their trade restrictions to help businesses prosper better between countries. It certainly helps to reduce taxes and helps them discuss their trade status.