IPE WEEK 8 Flashcards
What is trade?
Trade is the exchange of one commodity for another.
What is protectionism?
Protectionism refers to policies designed to restrict the import of goods and services, commonly through tariffs.
What are some critiques of free trade?
Environmental degradation (environmentalists) and social costs (feminism).
What is the WTO?
The World Trade Organization is an intergovernmental organization that creates global trade rules and settles disputes between countries.
What did the WTO evolve from?
The General Agreement on Tariffs and Trade (GATT), which was negotiated by 23 countries in 1947.
What are the main functions of the WTO?
Administering trade agreements, acting as a forum for trade negotiations, settling trade disputes, reviewing national trade policies, building trade capacity of developing economies, and cooperating with other international organizations.
What are the core principles of the WTO?
Non-discrimination/MFN, reciprocity, transparency, and multilateralism.
What is the Doha Development Round?
A round of WTO negotiations that began in 2001 with the objective of lowering trade barriers globally but has stalled due to unresolved issues.
What is regionalism in trade?
: It is an intentional and formal political process to increase cooperation and interdependence between several states in geographical regions.
What is a Regional Trade Agreement (RTA)?
An RTA is any reciprocal trade agreement between two or more partners, not necessarily from the same region.
What is the African Continental Free Trade Area (AfCFTA)?
It is the world’s largest free trade area, aiming to accelerate intra-African trade and strengthen Africa’s position in the global market.
What are the challenges of RTAs?
Overlapping memberships, regulatory confusion, implementation problems, and potential erosion of sovereign governments’ rights.
Why do countries enter into regional trade agreements?
For enhanced bargaining power, mechanisms for reform, larger markets for domestic industries, and economies of scale.
What are the types of Regional Trade Agreements?
Free trade areas, customs unions, and economic unions.
How do RTAs impact the WTO?
They can undermine the effectiveness of the multilateral trading system but also address issues not covered by the WTO.
