PRINCIPLE OF THE GLOBAL TRADE REGIME

• the GATT-based trade regime marked a critical turning point

• GATT provided the basis for a highly developed trade regime

TRADE LIBERALIZATION
• GATT promoted the trade liberalization principle mainly by
lowering tariffs
• it lowered tarrifs through eight rounds of multilateral
negotiations (MTNs)
IPE SCHOLARS ASK WHY TRADE
LIBERALIZATION CONTINUED DESPITE
THE DECLINE IN U.S TRADE HEGEMONY
NONDISCRIMINATION
• nondiscrimination principle as "the fundamental cornerstone "
of the global trade organization
Two dimensions:
 external (most-favored-nation treatment)
 Internal (national treatment)