Estructuras Economicas

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ESASCD 2006/2007
Master in Cooperation and International Economic Integration

-Trade

Negotiations Module-

I. Multilateral Trade Negotiations



1. GATT/ WTO: Principles, Structure, Economics
GATT/ WTO: Principles Structure Economics
2. The Doha Round: what place for Development?

II. Regional Trade Negotiations
Regional Trade Negotiations



3. Multilateralism vsregionalism? Trends and key features
4. The EPA negotiations between EU and ACP countries

III. Trade Negotiations and Development


5. Aid for Trade ?

ESASCD 2006/2007
Master in Cooperation and International Economic
Integration

Trade Negotiations Module
Multilateral Trade Negotiations

GATT/ WTO: Principles, Structure, Economics

-Francesco RampaProgramme Officer
Economic andTrade Cooperation
and Trade Cooperation

Outline







I. A picture
picture
II. Principles
III. Negotiations
IV. Structure
V. Economics
Economics

The World Trade Regime: a picture






Institutional set-up
From 1948 until 1995, no international organisation, “provisional”
GATT Secretariat, practical
1995, World Trade Organization… Increasing number ofmembers…today 150
150
Once upon a time
Planning of post-war period during WWII by US and Great-Britain
with web of multilateral organisation (UN IMF World Bank
with web of multilateral organisation (UN, IMF, World Bank, …)
Idea: free trade will eventually create peace (commercial
liberalism)
Embedded liberalism = free trade + welfare state…among key
liberalism free trade welfare state
keynegotiators: Keynes (UK)
International Trade Organisation
Conference on Trade and Employment in Havana, Cuba in 1947
on Trade and Employment in Havana, Cuba in 1947
Havana Charter: rules on trade employment, commodity
agreements, restrictive business practices, international
investment, and services.
Too ambitious, never brought to vote in US congress

General Agreement on Tariffs and Trade(GATT)
• from December 1945 onwards, negotiations to (reduce and) bind
customs tariffs
strict reciprocity
• tariff bindings + General Clauses in Protocol of Provisional
Application of the GATT
• Latin-American countries refused to join, they would have joined
th
the ITO
development !!!
• Quantitative restrictions (QR) for balance-of-payments reasons
restrictions (QR) for balancereasons
until beginning 1960s.
post-war reconstruction
contrary to rule to abolish QR (less transparent then tariffs)
• Exceptions for agriculture
war and post-war experience, fear for shortages
• Exceptions for textiles (since 1961)
• First real amendment for developing countries (1954/55)
(1954/55)
article XVIII: (A) infant industry; (B) BoP; (C) and, economic
development.

World traderegime


Regime = structure, provides common guidelines for behaviour and shared
expectations
expectations
• Issue-area = trade (in 1947, goods; since 1995, goods + services + TRIPS + TRIMS)
• Purposively established =
-General Agreement on Tariffs and Trade (1947)
-Treaty establishing the World Trade Organization (1995)
th
(1995)
• Regime aim: trade ⇒ wealth ⇒ peace
• Regime –objective:
-1947: gradual liberalisation of trade in goods
-1995: gradual liberalisation of trade in goods and services
Regime norms:
-Market access
• tariffs + non-tariff barriers

non-tariff barriers = subsidies, dumping, laws and regulation (e.g. product
standards, health and safety standards, environmental standards,..), …
sa
-Predictability: Rule-based system; Trade Policy ReviewMechanism (since 1995);
Dispute Settlement Procedure (since 1947, revised 1995)
-Non-discrimination
-Reciprocity (Trading concessions)
concessions)

‘S
‘Sources’ of WTO principles








Legal texts (GATT and subsequent)
Dispute settlement reports
Acts of WTO organs
Agreements in WTO context
g
Customary international law
General principles of law
Other agreements...
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