1. INTERNATIONAL TRADE- A FEATURE OF A DEVELOPED SOCIETY

Question 1

The history of establishing GATT

Answer 1

Bretton Woods Conference 1944, Roosvelt’s Trade Policy, creating ITO, which never materialized. Instead we got GATT- General Agreement on Tariffs and trade

Question 2

2 Main features of GATT

Answer 2

**1. Tariff updates **(countries would meet regularly in ‘Negotiating Rounds’ to discuss and update their tariff agreements (8 rounds complited)
**2. Dispute resolution **

Question 3

5 goals of GATT

Answer 3

1. Raising standards of living
2. Ensuring full employment
3. Increasing real income and effective demand
4. Developing the full use of global resources
5. Expanding the production and exchange of goods

Question 4

Means to achieve GATT’s goals

Answer 4

1. Entering into reciprocal and mutually advantegous arrangments
2. Substantial reduction of tariffs and other trade barriers
3. Elimination of discriminatory treatment in international commmerce

Question 5

GATT’s basic idea

Answer 5

liberalizing trade through common rules, reciprocity and non-discrimination

average tariffs dropped from about 40% after WW II to less than 5% today

Question 6

What led to the end of GATT? (5 things)

Answer 6

1. No strong structure

2. Inconsistent agreements: Some agreements weren’t signed by all members, creating uneven rules <GATT></GATT>

3. Exemptions for certain products: Agriculture and textiles avoided GATT

4. Growing services sector: The rise of services trade needed broader rules beyond GATT’sw scope

5. Weak dispute settlement: Disputes could be blocked by one country, preventing decisions from being enforced <by></by>

Question 7

Creation of WTO event and date, central location, number of members

Answer 7

1986-1994; in the Uruguay Round the World Trade Organization was finally created

Central location: Geneva, Switzerland

Members: 166 countries

Question 8

Why does WTO exist? (what does WTO that GATT didn’t)

Answer 8

Strengthens multilateral binding on states

Restrains retaliatory policies (polityka odwetowa) and protectionist measures

Question 9

Multilateral Agreemnets (binding on all members) and Plurilateral Agreements (binding on some members)

Answer 9

1. Multilateral Agreements:
- Goods
- Services
- Intellectual property

2. Plurilateral Agreements:
- Agreement on Trade in Civil Aircraft
-Agreement on Government Procurement

Question 10

Functions of WTO

Answer 10

• Administers trade agreements
• Negotiating forum
• Dispute settlement
• Trade policy Review Mechanism
• International cooperation

Question 11

STRUCTURE OF WTO

Answer 11

Ministerial Conference: one representative from each member, meets every 2 years

General Council: a diplomatic representative for each member. Carries out functions of MC when not seated. Meets also as
Dispute Settlement Body
Trade Policy Review Body

Coordinates activity of 3 councils responsible for application of GATT, GATS and TRIPS

Secretariat: no decision-making authority, agents don’t represent their countries, administrative and technical support

Director General: nominated by Ministerial Conference. Respresents whole organization in external relations; directs activity of Secretariat

Committees/Working Groups: carry out study activities on specific topics