Why Trade Before GATT
“For the only way in which a durable peace can be created is by world-wide restoration of economic activity and international trade” – James Forrestal (1892 – 1949) [a]. Regardless of Forrestal’s controversial life, the importance of trade remains a universal fact.
Trade before GATT
The concept of ‘free trade’ was introduced by Adam Smith and David Ricardo towards the end of 18th century. In 1846, Great Britain used its powerful influence to echo this ideology to other countries. However, protectionism and high trade barriers present in most countries left the idea hanging. The 1929 crash of the United States (US) stock market followed by the Great Depression in the 1930’s created trade war among countries. Raised trade barriers in a desperate …show more content…
It is the only organization dealing with global rules of trade between nations. Hence, it is often referred to as the “Global Police”. The WTO “ensures the flow of trade as smoothly, predictably and freely as possible” by acting as a forum for negotiation, signing and parliamentary ratification of agreements by its member countries. How does it deliver its mandate? The WTO set 6 objectives to achieve its purpose: (i) administer trade agreements; (ii) act as a forum for trade negotiations; (iii) settle trade disputes; (iv) review national trade policies; (v) assist developing countries in trade policy issues, through technical assistance and training programmes; and (vi) cooperate with other international organizations. These 6 objectives can be summarized into one: provide a legal framework to integrate the results of negotiations and create a forum of “reciprocal and mutually advantageous exchange of market access commitments on non-discriminatory basis”. How is this achieved? This is achieved through the reduction of any form of barrier to trade. …show more content…
97% of the world trade originates from these countries[g]. The WTO engages all its members in decision making. All voices are heard before any agreement is concluded. [h]Given the highly centralized nature of the organization, the WTO adopted the following 4 level structure to ensure smooth functioning: (i) Ministerial Conference: top level decision-making body; (ii) General Council: trade policy review and dispute settlement bodies; (iii) councils for goods, services and intellectual property (TRIPS); and (iv) committees and working parties handling specific issues following the chain of command. [i] The WTO also has a Secretariat, currently headed by Director-General Roberto Azevêdo. The role of the Secretariat is to provide technical assistance to the WTO and liaise with external stakeholders on different trade-related aspects. In order to deliver its mandate the Secretariat uses an annual budget of CHF 197,203,900 in 2013 alone. It has around 600 staff, all based in
Trade before GATT
The concept of ‘free trade’ was introduced by Adam Smith and David Ricardo towards the end of 18th century. In 1846, Great Britain used its powerful influence to echo this ideology to other countries. However, protectionism and high trade barriers present in most countries left the idea hanging. The 1929 crash of the United States (US) stock market followed by the Great Depression in the 1930’s created trade war among countries. Raised trade barriers in a desperate …show more content…
It is the only organization dealing with global rules of trade between nations. Hence, it is often referred to as the “Global Police”. The WTO “ensures the flow of trade as smoothly, predictably and freely as possible” by acting as a forum for negotiation, signing and parliamentary ratification of agreements by its member countries. How does it deliver its mandate? The WTO set 6 objectives to achieve its purpose: (i) administer trade agreements; (ii) act as a forum for trade negotiations; (iii) settle trade disputes; (iv) review national trade policies; (v) assist developing countries in trade policy issues, through technical assistance and training programmes; and (vi) cooperate with other international organizations. These 6 objectives can be summarized into one: provide a legal framework to integrate the results of negotiations and create a forum of “reciprocal and mutually advantageous exchange of market access commitments on non-discriminatory basis”. How is this achieved? This is achieved through the reduction of any form of barrier to trade. …show more content…
97% of the world trade originates from these countries[g]. The WTO engages all its members in decision making. All voices are heard before any agreement is concluded. [h]Given the highly centralized nature of the organization, the WTO adopted the following 4 level structure to ensure smooth functioning: (i) Ministerial Conference: top level decision-making body; (ii) General Council: trade policy review and dispute settlement bodies; (iii) councils for goods, services and intellectual property (TRIPS); and (iv) committees and working parties handling specific issues following the chain of command. [i] The WTO also has a Secretariat, currently headed by Director-General Roberto Azevêdo. The role of the Secretariat is to provide technical assistance to the WTO and liaise with external stakeholders on different trade-related aspects. In order to deliver its mandate the Secretariat uses an annual budget of CHF 197,203,900 in 2013 alone. It has around 600 staff, all based in