AEM 2300 Lecture Notes - Lecture 11: Uruguay Round, General Agreement On Tariffs And Trade, World Trade Organization
24 Mar 2017
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Document Summary
The world trade organization is a product of gatt (general agreement on tariffs and. Multilateral agreement to decrease trade barriers and assure equal treatment among member countries. 8 negotiating rounds between 1947 and 1994. Acceptance of most-favored nation principle; extension to all member nations the most favorable treatment given to any single member. Elimination of non-tariff trade barriers, such as import quotas, export subsidies, etc. which are more trade-distorting and can be used to discriminate against specific nations. Exceptions: agricultural products, nations in balance of trade difficulties. Encourage resolution of trade disputes through consultation, complaint procedures and conciliation panels. But no way to enforce panel"s recommendations (until formation of the wto) Major accomplishments of the uruguay round of the gatt: Tariff reductions: averaged 40% for industrial countries, spread over 5-10 years, with elimination of tariffs in selected sectors (steel, pharmaceuticals, medical equipment, construction equipment, paper, etc. ) and binding (capping) of many tariffs.
