SOCIOL 2 Lecture Notes - Lecture 20: General Agreement On Tariffs And Trade, World Trade Organization, Economic Globalization
Document Summary
Non-tariff barriers a government regulation that indirectly limits trade or makes it more expensive. High agricultural subsidies for domestic farmers make it harder for foreign farmers to compete because they make domestic farm products cheaper. Gatt = general agreement on tariffs and trade . Gatt - signed in 1947 - is a multilateral agreement regulating trade among more than 100 countries. Wto is a formalization" of the gatt created in 1995. Involved countries get together every few years to negotiate. "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis. (gatt preamble) It can be very disruptive and harmful to workers. To reap benefits of trade, have to shift production toward things we produce efficiently. Workers in industries that face global competition. Especially those without high levels of education/skills. The blow can be softened if a country has very strong safety nets and job training programs.
