Ofelia Rei Pante BSAcc 2A

1. General Agreement on Tariffs and Trade (GATT)

Purpose: GATT aimed to promote international trade by reducing or eliminating trade barriers such
as tariffs, quotas, and subsidies.

History: GATT was established in 1947 as a legal agreement between many countries, and it was the
outcome of the failure of negotiating governments to create the International Trade Organization
(ITO). It lasted until 1994.

Significance: GATT was instrumental in laying the foundation for the modern global trade system. It
conducted several rounds of negotiations (called "rounds") where member countries negotiated
mutual reductions in trade barriers. The most significant rounds were the Kennedy Round (1964-
1967), the Tokyo Round (1973-1979), and the Uruguay Round (1986-1994), the last of which led to
the creation of the WTO.

2. World Trade Organization (WTO)

Purpose: The WTO regulates international trade by providing a framework for negotiating trade
agreements and a dispute resolution process aimed at enforcing participants' adherence to WTO
agreements.

History: The WTO was established on January 1, 1995, following the conclusion of the Uruguay
Round negotiations and replacing GATT.

Significance: The WTO oversees the implementation, administration, and operation of the covered
agreements. It serves as a forum for trade negotiations and handles trade disputes. The WTO also
monitors national trade policies and provides technical assistance and training for developing
countries.

3. International Monetary Fund (IMF)

Purpose: The IMF promotes international monetary cooperation and provides policy advice and
capacity development support to help countries build and maintain strong economies. It also
provides financial assistance to countries to help correct balance of payments problems.

History: Established in 1944 at the Bretton Woods Conference along with the World Bank, the IMF
aimed to reconstruct the international payment system post-World War II.

Significance: The IMF monitors the global economy and the economies of its member countries,
providing financial assistance and policy advice. It offers various forms of financial assistance,
including Stand-By Arrangements, the Extended Fund Facility, and the Rapid Financing Instrument.
The IMF's work is crucial in times of economic crisis, providing loans to stabilize economies.
4. World Bank (WB)
Purpose: The World Bank provides financial and technical assistance to developing countries for
development programs that are expected to improve economic prospects and quality of life.

History: Founded in 1944 at the Bretton Woods Conference, the World Bank comprises two
institutions: the International Bank for Reconstruction and Development (IBRD) and the
International Development Association (IDA).

Significance: The World Bank focuses on long-term economic development and poverty reduction. It
provides low-interest loans, zero to low-interest credits, and grants to developing countries for
investments in education, health, public administration, infrastructure, financial and private sector
development, agriculture, and environmental and natural resource management.

5. Organization for Economic Co-operation and Development (OECD)

Purpose: The OECD promotes policies that improve the economic and social well-being of people
around the world. It provides a platform for governments to compare policy experiences, seek
answers to common problems, identify good practices, and coordinate domestic and international
policies.

History: The OECD was established in 1961, succeeding the Organization for European Economic Co-
operation (OEEC), which was founded in 1948 to help administer the Marshall Plan for the
reconstruction of Europe after World War II.

Significance: The OECD works on a broad range of economic, social, and environmental issues. Its
research and publications are used to shape policies and inform public debate. The OECD also
conducts peer reviews and monitors economic trends and developments.

6. Organization of Petroleum Exporting Countries (OPEC)

Purpose: OPEC coordinates and unifies the petroleum policies of its member countries and ensures
the stabilization of oil markets in order to secure an efficient, economic, and regular supply of
petroleum to consumers, a steady income to producers, and a fair return on capital for those
investing in the petroleum industry.

History: OPEC was founded in Baghdad in 1960 by five countries: Iran, Iraq, Kuwait, Saudi Arabia,
and Venezuela. It has since expanded to include several other oil-producing nations.

Significance: OPEC has significant influence on global oil prices by setting production targets for its
member countries. Its decisions can impact the global economy, affecting everything from
transportation costs to inflation rates. OPEC's policies can also affect geopolitical relations among
member and non-member countries.

7. European Union (EU)

Purpose: The EU is a political and economic union that aims to foster economic cooperation by
creating a single market, where goods, services, people, and capital can move freely. It also works
on common policies in areas such as agriculture, fisheries, regional development, and external
relations.

History: The EU traces its origins to the European Coal and Steel Community (ECSC) and the
European Economic Community (EEC) established by the Treaty of Rome in 1957. It has since
evolved through various treaties into the current EU.

Significance: The EU has become one of the world's major economic and political entities. It has its
own currency, the euro, used by 19 of its 27 member countries. The EU's regulatory framework and
standards often set benchmarks worldwide. It also plays a crucial role in global diplomacy and
international relations.

8. North American Free Trade Agreement (NAFTA)

Purpose: NAFTA aimed to eliminate barriers to trade and investment between the U.S., Canada, and
Mexico, creating one of the world's largest free trade zones.

History: NAFTA came into effect on January 1, 1994. It was replaced by the United States-Mexico-
Canada Agreement (USMCA) on July 1, 2020, which updated and revised many NAFTA provisions.

Significance: NAFTA significantly increased trade and investment flows between the three countries,
contributing to economic growth and integration. It removed tariffs on most goods traded among
the three countries and established mechanisms for resolving trade disputes. NAFTA also set a
precedent for future trade agreements and influenced global trade policy.

These organizations and agreements have collectively shaped the global economic landscape,
promoting international trade, financial stability, economic development, and cooperation among
nations.