The influence of the WTO on Bulgaria
An essay by Jochen Raab
International Business 3
Matrikelnr. 803185
With reference to the WTO's trade policies, explain how they have helped or hindered the development of international trade in Bulgaria.
Bulgaria is located at the Black Sea, neighboring Romania, Yugoslavia, Macedonia, Greece and Turkey. Its capital is Sofia. Bulgaria's industries consisted mainly of agriculture until 1947. After World War II, under a communist regime, all existing industry was nationalized, with heavy industry set to first priority. After 1992 privatization and market reforms began, creating many jobs in especially the service sector. The GDP in 2000 was US$ 11 995 Mill, divided into service 57.7%, industry 27.8% and agriculture 14.5%. The majority of the exported goods are delivered to the republics of the former USSR and other eastern European states. The significant Western Europe trade partners are Italy, Greece and Germany. Bulgaria's main export goods are machines, metal, chemical products, leather goods and textiles, food and luxury articles. Its balance of trade is negative.1
In December 1996, Bulgaria joined the WTO and started implementing their economic reforms. Since then, Bulgaria and its economy progressed due to those reforms, capable to meet the challenges of the globalizing markets. Not only has it achieved a macro economically stable environment and economic growth, but it also progressed on meeting the demands of NATO and the European Union. Bulgaria's policies are based on three important factors: financial stability, solid economic growth and structural reforms. By following these policies, Bulgaria had the possibility to undergo fundamental changes, ensuring higher efficiency and labor producti ...