ECO342H1 Chapter Notes - Chapter 4: General Agreement On Tariffs And Trade, Industrial Revolution, Kennedy Round
Document Summary
Gatt: established after geneva round of negotiations. Means trade discrimination is no worse for a country than most favored trading partner of country granting status: us takes lead with 35% average tariff reduction. Impact: tariffs fall from 40% after wwii to 5% by 1995, export volumes grow faster than output. Even after demise of bretton woods: economic growth associated with liberalization of trade through reduction of trade barriers, standard view: Gatt largely responsible for freer international trade. Was motor of growth in golden age. Us principal actor in reducing trade barriers. Was not important component of reconstruction of europe in 1940s and 1950s. Countries with greatest multiplier impacts are countries with low marginal propensity to import: japan, us. Increase in exports allows country to import without balance of payments deficit. Importance in international trade is increase in size of market. Tariffs prior to 1945: industrial revolution in britain in mid-1700s depended largely on explosion of productivity of textile manufacturing.
