GEOG 216 Chapter Notes -North American Free Trade Agreement, World Trade Organization, Kennedy Round
5 Dec 2012
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International negotiation: governments agreed to engage in mutual tariff reduction: linked reduced protection for each country"s import-competing industries to reduced protection by other countries against that country"s export industries. A mutual agreement helps mobilize support for freer trade. Negotiated agreements on trade can help governments avoid getting caught in destructive trade wars. Acting unilaterally, each country will usually choose the outcome that appears in their best interest prisoner"s dilemma. 1930: smoot-hawley act: tariff rates rose steeply and u. s. trade fell sharply. Needed to make bilateral agreements to counteract this act 1932. Multilateral negotiations began soon after the end of ww2. 1947: gatt, 23 countries governed trade for 48 years: began as an agreement contracting parties. Trade rounds are used to make forward progress. Kennedy round: 1967, 50% reduction in tariffs by the major industrial countries. Uruguay round cut tariff rates around the world moved to liberalize trade in agriculture and clothing.
