U1 WTO intro

Question 1

World Trade Organization

Answer 1

• International organization for supervising and liberalizing international trade.
• Established on January 1, 1995.
• Successor to the General Agreement on Tariffs and Trade (GATT) formed in 1948.
• Majority of current work stems from the 1986-94 negotiations (Uruguay Round) and earlier GATT negotiations.
• Currently hosts new negotiations under the Doha Development Agenda (DDA) initiated in 2001.
• Deals with trade rules between nations on a global scale.
• Responsible for negotiating and implementing new trade agreements.
• Polices member countries’ adherence to all WTO agreements.

Question 2

WTO Goals

Answer 2

• Lowering tariffs that hinder free trade.
• Eliminating import quotas, subsidies, and unfair technical standards that restrict competition in the global market.
• Recognizing protection for patents, copyrights, trademarks, and other intellectual properties.
• Reducing barriers for banks, insurance companies, and financial services.
• Assisting impoverished countries in developing trade policies and fostering economic growth.

Question 3

Free-trade Zones

Answer 3

• Designated area near a seaport or airport.
• Products can be imported duty-free and stored, assembled, or used in manufacturing.
• Importer pays duty only when the product leaves the zone.

Question 4

Most favoured nation

Answer 4

• receive preferential treatment in terms of customs duties.
• Products imported from countries without MFN status are charged higher customs duty rates.

Question 5

Free-trade agreements

Answer 5

• Member countries eliminate duties and trade barriers on products traded among them.
• This leads to increased trade between the member countries.

Question 6

Common markets

Answer 6

• Members eliminate trade barriers and duties.
• Companies can freely invest in each member’s country.
• Workers can move freely across borders.