March 6, 2012
Discussing into and nafta
Chap 6 on informalization and migration of labour and shift into urbanizations
chapt 5 in reader
- doctrine of comparative advantage
-> underlies this thinking behind promoting export oriented trade
As the principle behind promoting economic growth development
The principle of comparative advantage has been enshrined in new trade agreements.
a new institutional architecture which supports the globalization project
global and regional trade agreements
-> World trade organization | north American trade agreement (nafta)
World trade Organization (WTO)
Grew out of the general agreement on tariffs trade (GATT)
GATT - provided for multilateral (between various countries) trade negotiations amongst member
- to reduce tariffs on manufacturing goods.
- grew out of the view that trade protectionism in the 1930s had seriously inhibited trade.
GATT was inserted into a broad set of concerns associated with the development project
Development project -> creating nationally managed economies that would replicate the us economic
GATT - producing tariffs to promote trade links between more autonomous or distinct nationally
Western Europe -> west German economy, France and UK, -> forms of Keynesian/full employment
Part of GATT, along with Japan and Canada.
Brazil and Mexico -> followed import substitution industrialization.
Because GATT was inserted into a context where national priorities around economic development
wear emphasized GATT had no institutional mechanism for enforcing treaty mechanisms.
- As the context of state policy changes with the movement from Keynesian notion to neo liberalism, the
role and purpose trade agreement also changes.
-> Trade agreements are seen as a means of enforcing trade relations and export orientated
ways of promoting economic development based on the notion of comparative advantage.- Seen by transnational capital - as way of assuring common rules and policies in member state that will
not interfere with the movement of capital and commodities, across national boundaries.
The existence of global supply chain as organized transnational corporations leads to the need for new
intuitions governing international trade investments.
In international trade and investments a major uncertainty or risk is that a particular national state will
alter a key part of the production environment whether through rising taxes and raising min wages.
-> more demanding environmental regulation.
- A new emphasis on international trade and investment frame work that are enforceable and therefore
So, WTO developments out of the Uruguay rounds of GATT negotiations. (1986 - 1994)
Previous rounds of - Kennedy rounds (1968) and Tokyo rounds (1978)
-> did reduce tariffs, but not as strong as Uruguay rounds.
-> Major expansion in the focus of trade negotiations.
-> Expansion of the area of negotiations from tariff to non tariff "barriers".
Tariffs -> Import duty on products coming from another country.
Non tariffs "barr