FREC 410
International Ag. Trade & Marketing
Multilateral Trade
Negotiations
Dr. Titus Awokuse
http://www.udel.edu/FREC/Awokuse/FREC410_webpage.htm
2
Rounds of GATT/WTO Negotiations
Multilateral Trade Negotiations
The GATT
!
!
!
General Agreement on Tariffs and Trade
Established after WWII (_________)
"
"
"
!
!
to promote reconstruction and economic growth through market
openings
To promote freer trade among nations through a system of rules
for commercial trade relations
A forum for trade negotiations and conflict resolution
!
!
!
! 1st
!
!
20 years, members focused on negotiations to reduce
global tariffs
Non-tariff policies emphasized in 1970s-80s
Final official act of GATT is creation ________________
!
!
3
1947 Geneva
1949 Annecy
1950-51
1955-56
1960-62
1963-67
1973-79
1986-94
Torquay
Geneva
Dillon Round
Kennedy Round
Tokyo Round
Uruguay Round
4
1
Uruguay Round:
The GATT – Guiding Principles
!
!
!
!
!
Reciprocity:
" each country is expected to reduce _______________
Non-discrimination:
" Countries must give all GATT members the same
preferences – ____________________________
Transparency:
" Trade barriers must not be disguised
National treatment:
" Goods should receive same treatment within a nation,
despite nation of origin
Compensation:
Accomplishements
!
!
!
Reduction of global ____________ by 33%
Provided about $6 billion boost to world
economy
Final document more than 450 pages with
annexes
" Final
Act: Agreements establishing the WTO
" 111 signatory countries
" Countries
harmed by changes in another’s policies are
_______________________________
5
6
Uruguay Round Agreement:
Provisions
Uruguay Round:
Implications for Agriculture
!
!
Agriculture played a central role in the
Uruguay Round of GATT
!
Set of completely new operational rules for
agriculture focusing on:
"
Market _______________
"
Domestic subsidies
"
Export ________________
The “Peace Clause”
" “Green
Box” policies are not subject to countervailing
duties or GATT challenges
!
Examples: research, extension, domestic food aid,
crop insurance, disaster payments, etc.
" “______
box” are subject to countervailing duties or
GATT challenges
!
7
Examples: direct payments for acreage reduction
8
2
Uruguay Round Agreement
Provisions
World Trade Organization (WTO)
!
!
Sanitary and Phyto-sanitary (SPS) Measures
Is a Super GATT Institution:
" Established
January 1, 1995
" Membership: 148 countries (as of October 2004)
" Make
it easier to distinguish between genuine
health and safety issues and disguised protection
" Standards
must be based on “_______________”
!
Genetic altered food
!
Hormone-induced beef, etc.
!
Only global international organization dealing with
the rules of trade between nations
" Has
greater powers of rule making and enforcement
" Goal is liberalize global trade and help producers of
goods and services, exporters, and importers conduct
their business in order to promote economic growth and
development
9
World Trade Organization (WTO)
!
10
Required Reading Assignment
New Features:
" Establishment
of a permanent dispute settlement body
and a trade policy review mechanism
" Secret deliberations of dispute panel (_____________)
" Unanimity required to reverse dispute panel decisions
!
Visit the WTO Website:
"
!
http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm
Read short articles under this sections:
" The
WTO in Brief
benefits of the WTO trading system
" 10 common misunderstandings about the
" About the WTO — ‘Understanding the WTO’
> Chapter 3: Settling disputes (8 pages)
" 10
!
Implies that countries will have to conform to
international standards rather than setting their
> Chapter 5: The Doha Agenda (16 pages)
> Chapter 6: Developing Countries (8 pages)
own __________________________
11
12
3