GATT and the WTO: A Historical Analysis of International Trade Agreements - Prof. William , Study notes of Economics

Download GATT and the WTO: A Historical Analysis of International Trade Agreements - Prof. William and more Study notes Economics in PDF only on Docsity! GATT and the WTO Eco 441 Increased Tariffs may have exacerbated 1930’s depression US Smoot-Hawley Tariff raised average tariffs 53% GATT: General Agreement on Tariffs and Trade Signed by 23 countries, October 1947 A treaty among “contracting parties” (not an organization) GATT Principles • Non-discrimination (MFN) • National treatment • Reciprocity Exceptions • “Enabling clause” allows “special and differential treatment” for developing countries o Generalized System of Preferences (GSP) • Customs Unions and Preferential Trade Agreements allowed • Agriculture and Textiles left out o Multifibre Agreement (MFA), 1974 Umbrella Agreement (the “Final Act” of the Uruguay round) 1a. Goods: GATT 1994 1b. Services: GATS 1c. Intellectual Property: TRIPs 2. Dispute Settlement 3. Trade Policy Reviews The Final Act is a “Single Undertaking” GATT 1994 includes agreements on: • Agriculture • Sanitary and Phytosanitary Measures (SPS) • Textiles and Clothing (MFA ended 2004) • Technical Barriers to Trade (TBT) • Trade-Related Investment Measures (TRIMs) • Anti-Dumping • Safeguards Dispute Resolution 1. Consultations 2. Panel 3. Appellate Body If a country is found to be in violation, and it does not modify its policy to comply with ruling, the complaining country can be authorized to impose sanctions.