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5.2.1GATT/WTO
P2Asweanalyzedabove,wefindthefreetradeisthefirstbestpolicywhiletheprotectionproposalisthesecondbestaccordingtotradetheories.Infact,freetradeandprotectivetradearebothnotneutralbecausetheybothconferbenefitstosomegroupsandmakeotherssuffered.Anationwillfaceadilemma,howtobenefitfromtradeandprotectdomesticmarketatthesametime?Arrangedliberalizationisacompromise/'kɒmprəmaɪz/thatcanachievethebothgoals.
Ifthetradingpartnersnegotiateandopendomesticmarketstepbystepintheworldwidescope,itisformingamultilateraltradingsystem,whichisembodiedbyGATTandsubsequentWTO.Ifitproceedsinregionalarea,itisembodiedbyregionalarrangements,suchasEUandNAFTA,
P3let’sstartwithGATT/WTO,anddiscusstheregionalarrangementslater.
P4theformationofGATTattributestotheUnitedStates’advocateandefforts.Formostofthelast100years,theUnitedStateshasenteredintotradenegotiationsbaseduponthebeliefthatopenmarketsfosterdemocracywhichinturnsupportsthemaintenanceofworldpeace.
Infact,tradepolicyhasbeenabedrock/'bedrɒk/ofU.S.foreignpolicydatingfromtheSecondWorldWar.
P5Astheinaugural/ɪ'nɔːgjʊr(ə)l/primeministeroftheUnitedKingdom,Mr.WinstonChurchillsaidin1941thathehadasecretmeetingwithPresidentRoosevelt/'rəuzəvelt/andreachedtheAtlanticCharter,whichstatedthepostwaraims.
P6thepostwarcooperationisbasedonthemiserablelessonsfromtheGreatDepressioninthe1930s,whichsetoffaviciousspiraloftraderetaliationthatsawtwo-thirdsofworldtradewipedout,worsenedunemployment,andeventuallycontributedtotheoutbreakofdevastatingwar.
TheseincludedtheUnitedStates’Smoot-Hawleytariffsin1929which,triggeredan“outburstoftariff-makingactivityinothercountries.”TheUnitedKingdomrespondedwithemergencytariffsin1931andthe1932OttawaAgreementtodeependiscriminatoryimperialpreferenceswithitsdominions(principallyAustralia,Canada,NewZealandandSouthAfrica).Similarprotectionistanddiscriminatorytradepolicieswereadoptedbymanyothercountries.Theoutcomewasadramatic66percentdeclineinworldtradeby1933,whichaggravatedtheGreatDepressionandcontributedtotheSecondWorldWar.
Therecanbenodoubtthatin1941,boththeUnitedStatesandtheUnitedKingdomrecognizedtherelationshipbetweenglobaleconomiccollaboration,opentrade,andenduringpeaceandsecurity.
P7Furthermore,neithercountrywantedtorepeatthedisastrousglobalescalationof‘beggar-thy-neighbour’retaliatorytradebarriersofthe1920sand1930s.
Therecanbenodoubtthatin1941,boththeUnitedStatesandtheUnitedKingdomrecognizedtherelationshipbetweenglobaleconomiccollaboration,opentrade,andenduringpeaceandsecurity.
Thus,theglobalrulesthatunderpinthemultilateraleconomicsystemwerecreatedasadirectreactiontoWorldWarIIandadesireforenduringpeaceandsecurity.
P8Bothleadersdidnotwanttorepeaterrorsofthepast–wheretherelationshipbetweeninternationaleconomiccollaborationandpeaceandsecurityhadbeenignoredwithdisastrousconsequences.
Economiccollaborationthroughthepost-warinstitutions–thatintimewouldleadtotheInternationalMonetaryFund,theWorldBankandWorldTradeOrganization–wascriticaltoavoidingnewwars.
P10inchapteronewehavediscussedthenatureofmodernnationstate.onthisbasis,theobviouscourage,wasdemonstratedinleadersmakingpolitically-difficultconcessionsbeyondimmediateeconomicself-interesttoreachanagreementoflong-termbenefit.
Yetlong-termpeaceandsecuritywastheundeniabledrivingforcebehindthecreationofthepost-warmultilateraleconomicrulesandarchitecture.
Today,thevalueofglobaleconomicrulesisbeingquestioned.Thishasbeencoupledwithanincreaseinprotectionisttradebarriers.
Afteroverhalfacenturyofrelativepeace,thosebenefitseasilycouldbeforgottenintoday’sdebatesaboutglobalization.Yettheyareoneofthegreatestlegaciesofaremarkablebutfragilesystemofglobaleconomicarchitecture.
P11From1948to1994,theGATTprovidedtherulesformuchofworldtradeandpresidedoverperiodsthatsawsomeofthehighestgrowthratesininternationalcommerce.Itseemedwell-establishedbutthroughoutthose47years,itwasaprovisionalagreementandorganization.
In1995,withtheexpansionoftopicsandissues,theWTOwasestablishedwithreplacementofGATTandsuccessionofGATT.
FormGATTtoWTO,themultilateralsystemisexpandingandbecomecomplete.
P12TheWTO’screationon1January1995markedthebiggestreformofinternationaltradesincetheendoftheSecondWorldWar.WhereastheGATTmainlydealtwithtradeingoods,theWTOanditsagreementsalsocovertradeinservicesandintellectualproperty.ThebirthoftheWTOalsocreatednewproceduresforthesettlementofdisputes.
P13Asthetableshown,form1947tonow,GATTlaunched8roundsmultilateralnegotiationandWTOlaunchedoneround.Moreandmorenationsjoinedintothesystem,tariffhasbeenconcededtoaverylowlevelandnon-tariffbarriersarerestrictedbyrules.
P14whatareitsfunctions?
GATT/WTOprovidesaforumfornegotiationsamongmembersconcerningtheirmultilateraltraderelationsandmakeseffortstoreachagreements.
Reachingagreementsisnotthefinalpurpose,itisveryimportanttomonitortheimplementationofagreements.
Atthesametime,WTOhasestablishedanofficialbodytohandletradedisputesamongmembernations,whichwillensureinternationaltradeinpredictablecircumstances.TheWTO’sprocedureforresolvingtradequarrelsundertheDisputeSettlementUnderstandingisvitalforenforcingtherulesandthereforeforensuringthattradeflowssmoothly.CountriesbringdisputestotheWTOiftheythinktheirrightsundertheagreementsarebeinginfringed.AtthebeginningofSino-UStradewar,theUnitedStatesandChinabothsubmittedtheircomplainttoWTO.
WTOsetupatradereviewbodytosuperviseiftradepoliciesofmembernationsviolateWTOrules.
WTOalsoplaysanimportantroleintheglobaleconomicgovernanceandcooperateswithIMFandWorldBank.TheWTOmaintainsregulardialoguewithnon-governmentalorganizations,parliamentarians,otherinternationalorganizations,themediaandthegeneralpubliconvariousaspectsoftheWTOandtheongoingDohanegotiations,withtheaimofenhancingcooperationandincreasingawarenessofWTOactivities.
P15Inspiteofthosefunctions,WTOcommitsto
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