POLS 1090 Lecture Notes - Lecture 7: Parliamentary System, General Agreement On Tariffs And Trade, Comparative Advantage
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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.