it will put a great deal of pressure on the elected decision-makers to take protectionist measures for the benefit of the few and to the detriment of the many. ========== The public choice theory explains that, when the majority of the voters are unconcerned with the (per capita small) losses they suffer, the vote-maximising political decisionmakers will ignore the interests of the many, and support the interests of the vocal and well-organised few. ========== We believe that the central challenge we face today is to ensure that globalization becomes a positive force for all the world’s people. ========== In many countries, extensive corruption and excessive bureaucracy act as a tax on trade – and the tax falls most heavily on the poor.102 ========== These domestic barriers include inadequate transport infrastructure, poor governance, bureaucratic harassment of small businesses, a lack of electric power, an unskilled workforce . . . And countries also need to make possible the participation of poor people in growth, through support for targeted education, health, social protection, and their involvement in key decisions that shape their lives. Poor people need much greater voice. ========== There are basically four related reasons why there is a need for international trade rules. First, countries must be restrained from adopting trade-restrictive measures both in their own interest and in that of the world economy. International trade rules restrain countries from taking trade-restrictive measures. As noted above, national policy-makers may come under considerable pressure from influential interest groups to adopt trade-restrictive measures in order to protect domestic industries from import competition. Such measures may benefit the specific, short-term interests of the groups advocating them but they very seldom benefit the general economic interests of the country adopting them.127 ========== A second and closely related reason why international trade rules are necessary is the need of traders and investors for a degree of security and predictability. Traders and investors operating, or intending to operate, in a country that is bound by international legal rules will be able to predict better how that country will act in the future on matters affecting their operations in that country. The predictability and security resulting from international trade rules will encourage investments and trade and will thus contribute to global economic welfare. ========== third reason why international trade rules are necessary is that national governments alone simply cannot cope with the challenges presented by economic globalisation. The protection of important societal values such as public health, a clean environment, consumer safety, cultural identity and minimum labour standards is, as a result of the greatly increased levels of trade in goods and services, no longer a purely national matter but ever more a matter with significant international ramifications. Attempts to ensure the protection of these values at the national level alone are doomed to be ineffective and futile. Further, domestic regulatory measures regarding, for example, product safety, health, environmental protection and labour conditions may constitute important barriers to trade. These measures are often not directly or expressly related to the regulation of trade but the fact that they differ from country to country acts as a significant constraint on trade. International trade rules serve to ensure that countries only maintain national regulatory measures that are necessary for the protection of the key societal values referred to above.130 International trade rules may also introduce a degree of harmonisation of domestic regulatory measures and thus promote an effective, ========== international protection of these societal values.131 ========== A fourth and final reason why international trade rules are necessary is the need to achieve a greater measure of equity in international economic relations. ========== that all countries take into account the need for appropriate balance between national policy space and international disciplines and commitments.’134 ========== international trade law, constitute the ‘hard core’ of international economic law. International trade law consists of, on the one hand, numerous bilateral or regional trade agreements and, on the other hand, multilateral trade agreements. ========== The most important and broadest of all multilateral trade agreements is the Marrakesh Agreement Establishing the World Trade Organization, concluded on 15 April 1994. It is the law of this Agreement – the law of the WTO – which is the subject-matter of this book. ========== the principles of non-discrimination; • the rules on market access; • the rules on unfair trade; • the rules on conflicts between trade liberalisation and other societal values and interests; including the rules on special and differential treatment for developing countries; and • the rules promoting harmonisation of national regulation in specific fields. ========== These substantive and procedural rules and principles of WTO law make up what is commonly referred to as the multilateral trading system. ========== There are two principles of non-discrimination in WTO law: the most-favourednation (MFN) treatment obligation and the national treatment obligation. ========== The first plurilateral agreement is the Agreement on Trade in Civil Aircraft. ========== The second plurilateral agreement is the Agreement on Government Procurement