LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, así como para ofrecer publicidad relevante. Si continúas navegando por ese sitio web, aceptas el uso de cookies. Consulta nuestras Condiciones de uso y nuestra Política de privacidad para más información.
LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, así como para ofrecer publicidad relevante. Si continúas navegando por ese sitio web, aceptas el uso de cookies. Consulta nuestra Política de privacidad y nuestras Condiciones de uso para más información.
ON TARIFFS AND TRADE)
BEGAN IN 1947 WITH 23 MEMBERS.
Purpose: “Substantial reduction of tariffs and
other trade barriers and elimination of
preferences, on reciprocal and mutually
The role of GATT
GATT sponsored rounds
GATT as monitor
Most Favorable Nation Clause(MFN)
Lack of legal status
Principles of GATT
Trade without Discrimination
Protection only through tariff
Stable basis of trade
Objectives of GATT
To provide equal opportunities to all countries in
international market for trading.
To increase the effective demand for real income
growth and goods.
To minimize tariffs on trade for ensuring mutual
To provide proper solution to the disputes related
to international trade.
To ensure a better living standards in the world as
Drawbacks of GATT
No enforcement authority
Problems in formulation of General rules
Less benefits for the LDC’s
Quantitative Trade Restrictions.
WTO(World Trade Organization)
Headquarters: Geneva, Switzerland
Purpose: Regulate international trade
Founded: 1 January 1995
Membership: 164 member states
Formation: 1 January 1995;
The current Director-General is Roberto Azevêdo of Brazil,
WTO(World Trade Organization)
The World Trade Organization (WTO) is
an intergovernmental organization that
regulates international trade.
to set and enforce rules for international trade,
to provide a forum for negotiating and monitoring
further trade liberalization,
to resolve trade disputes
to increase the transparency of decision-making
to cooperate with other major international
economic institutions involved in global economic
to help developing countries benefit fully from the
global trading system.
Helping developing and transition economies.
Specialized help for export
THE RELEVANCE OF WTO
• The system helps promote peace.
• The system allows disputes to be handled constructively.
• A system based on rules rather than power makes life easier
• Freer trade cuts the cost of living.
• It gives consumers more choice and a broader range of
qualities to choose from.
• Trade raises incomes.
• Trade stimulates economic growth and that can be good
news for employment
• The basic principles make the system economically more
efficient, and they cut costs.
THE RELEVANCE OF WTO
Developing Countries How the WTO deals with the
special needs of an increasingly important group.
In the agreements: more time, better terms
Legal assistance: a Secretariat service.
WTO technical cooperation
Participation in the system: opportunities and
• Least-developed countries: special focus
• Committees -Trade and Development Committee
Difference between GATT &
The rules of GATT are only
for trade in goods.
Not given much emphasis.
No permanent structure
The rules of WTO includes
services and aspects of
intellectual property along
with the goods.
Group of countries
Existence within a geographical region.
Motive is to protect themselves from the imports of
A form of economic integration increasingly
shaping the pattern of world trade.
Objectives of Trading Blocs:
i. To remove trade restrictions among member
ii. To improve social, political, economic and cultural
relations among member nations.
iii. To encourage free transfer of resources.
iv. To establish collective bargaining.
v. To promote economic growth.
TYPES OF TRADING BLOCS
Major Types of Trading Blocs:-
1.Preferential Trade Area (PTA’s)
2.Free Trade Area
Major Regional Trade Blocks
North American Free Trade Agreement(NAFTA)
South Asian Association for Regional
South Asian Free Trade Area(SAFTA)
Association of South-East Asian Nations(ASEAN)
Positive aspects/REASONS FOR JOINING
Greater Bargaining Power
The world’s largest trading bloc.
The 2nd largest economy in the world.
Originally called the “Economic Community”.
(Common Market or The Six)
Formed from the ‘Treaty of Rome’ in 1957.
It comprised of 6 members- Germany, France,
Italy, Belgium, Netherlands and Luxemburg. At
present it comprises of 27 member states.
North American Free Trade
Initially bilateral trade between Canada & U.S.
NAFTA went into effect in January 1,1994 after the
joining of Mexico, creating a trilateral trade bloc in
World’s largest free trade area.
NAFTA has two supplements: the North American
Agreement on Environmental Cooperation (NAAEC)
and the North American Agreement on Labour
Association of Southeast Asian
Formed 8th August,1967 (Indonesia, Malaysia,
Philippians, Singapore & Thailand)
Later joined by Brunei, Burma, Cambodia, Laos &
Vietnam Established ASEAN Free Trade Area
Headquarter- Jakarta, Indonesia
South Asian Association for
Regional Cooperation (SAARC)
Established on 8th December 1985
Member Countries- Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan & Sri Lanka
Headquarter- Kathmandu, Nepal
South Asian Free Area(SAFTA)
The council of ministers have signed the SAARC
preferential trading arrangement agreement on
April 11, 1993.
To gradually liberalize the trade among members
To eliminate trade barriers among SAARC countries
& reduce or eliminate tariffs To promote and
sustain mutual trade & economic cooperation
among member countries
Association of South-East Asian