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Globalisation, WTO and GATT
Globalisation, WTO and GATT
Globalisation, WTO and GATT
GATT
Globalisation
Definition:
An economic phenomenon?
A social phenomenon?
A cultural phenomenon?
30
25
20
15
10
Components of
Globalization?
Economic globalization
Political globalization
Cultural globalization
Integration of Economies
The increasing reliance of economies
on each other
The opportunities to be able to buy
and sell in any country in the world
The opportunities for labour and
capital to locate anywhere in the
world
The growth of global markets in
finance
Integration of Economies
Made possible by:
Technology
Communication networks
Internet access
Growth of economic cooperation
trading blocs (EU, NAFTA, SAARC etc.)
Collapse of communism
Movement to free trade
A law?
Based on the WTO Regulation
A group of people?
Members of the WTO agreed
A meeting?
The WTO meeting was held in
History
After World War II many nations had
adopted a protectionist stance on
trade
Many felt closed-protectionist
positions was a cause of WWII
Victor nations set up economic
institutions to prevent this from
happening again
History
Bretton Woods System of 1946
International Monetary Fund (IMF)
World Bank
International Trade Organization (ITO)
History
History - GATT
Trade Rounds negotiation meetings
First 6 rounds reduced tariffs from ~50%
to ~12%
7th, the Tokyo Round of the early 70s was
first major effort at trade reform
Mainly about non-tariff barriers to trade, such
as:
Subsidies
Quotas
Foreign exchange controls
Import bans
Restrictive licensing
History GATT
The 1986 Uruguay Rounds of trade
negotiations covered new trade topics
Trade in services and intellectual property
Sensitive subjects, like textiles and
agriculture
History WTO
Uruguay Round ended in 1994 with
the formation of the World Trade
Organization
Jan. 1, 1995 WTO was born
GATT, GATS and TRIPS still exist as the
framework for the WTOs operations
History
Current Round Doha
Began November 2001
1.
2. Reciprocity
Ensures predictability
4. Transparency
5. Safety Valves