1. Growth of global trade stat
    6% per year for last 60 years
  2. Def of WTO
    Intl political system under which govs negotiate/enforce/revise rules that govern trade policies
  3. WTO replaced
    GATT in 1995
  4. countries in WTo
  5. Dispute Settlement key points
    • Under GATT no fixed timetables, rulings easy to block
    • NOW more harmonious as legal foundation more solid
    • greater discipline
    • Court/Tribunal but negotiation encouraged
  6. 1st Principle
    • Most Favoured Nation
    • non-discriminatory
    • equal access to all market
    • BUT exceptions; RTAs
    • or GST - apply lower tarriffs to imports from developing countries
  7. Free Trade
    • Open trading helps producers/exports/importers conduct business
    • governments meet social/enviro standards
    • lowering gtrade barriers/opening markets
    • benefitical BUT requires adjustment
    • "progressive liberalisation"
  8. Competition
    • discourages "unfair" practices
    • e.g. export subsides and "dumping" products at below cost to gain market share
    • Dumping: intl price discrimination in which an exporter sells its output in a foreign market for v low price and remaining output domestically very high
    • WTO condems dumping
    • but not prohibited
    • 2006 largest anti-dumping case against China - silk in India
  9. Number of dev:
    • over 3/4 of WTO are developing or countries in transition to market economies
    • During 7 1/2 years of Uruguay round: over 60 implemented trade liberalization autonomosuly
  10. Doha Development Round
    • commenced 2001
    • objective is to lower trade barriers around the world
    • make trade rules fairer for developing countries
    • opening agricultural markets
  11. Doha Dev critique
    • interferes with sovereignty
    • and domestic policy
    • Agriculture: Tanzania 75% workforce in agriculture, contributing to 26% GDP

    BRIC - prevented conclusion based on a package that fails to offer them substantive market access in agriculture
  12. Hegemonic Stability Theory
    • intl system more likely to be stable when a single state is dominant
    • hegemon - produces disproportionate of worlds trade output
    • benefits so large, willing to bear the cost of intl trade rules
    • provides a public good. eliminates "fre riding as a problem"
    • but decline: instability
    • trade becomes less open
    • global imbalances generate conflict
    • US declining? Keohane sees power as tied to resource and production - challenged by China
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