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Background:

1930s collapse of multilateral trade and paymentssystem. Restrictions continued during World War II

Discussions during World War II between Britain and

USA on post-war cooperation = 1941 Mutual AidAgreement Talks in Washington and London

International Conference at Bretton Woods New

Hampshire July 1944: Created IMF and IBRD (World Bank)

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GATT to 1994: GATT established a secretariat

institutionalisation

GATT negotiated tariff reductions on a productby product basis. Note the importance of:

MFN principle encourage non-discrimination

Condemnation of quantitative trade restrictions andnew preferences Encouragement of multilateralism Exceptions to MFN principle.

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GATT Rounds:

Annecy, 1949 = 29 parties Tourquay, 1950-1951 = 32 parties Geneva, 1955-1956 = 33 parties

Dillon, 1960-61 = 39 parties Kennedy, 1964-1967 = 74 parties Tokyo, 1973-1979 Uruguay Round, 1986-1994 127 members of

the WTO when est. in 1995.

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Problems in the GATT by the 1960s:

Proliferation of Preferential Trade Areas

No negotiation on agricultural products,

important to developing countries.

Non-tariff barriers to trade (NTBs)

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Dealing with Problems Agriculture and NTBs began to be addressed

in the Kennedy Round

New chapter introduced into the GATT toaddress concerns of developing countries andGSP allowed by the GATT by 1971.

Uruguay Round attempted to update the GATTand create a more organised liberal tradeorder.

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UNCTAD

1950s grievances of developing countries:

Poor performance of primary product exports =not covered in GATT (until Kennedy Round);agricultural restrictions in industrialised countrieswere serious impediments.

Perception of the GATT as a club of the rich

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WTO ALSO INCLUDES

Extra Agreements and Annexes

Schedules of Commitments

Plurilateral Agreements:

(1) civil aircraft and (2) government procurement

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IMPLICATIONS

PREDICTABLE SYSTEM OF FREER, FAIRER AND MORECOMPETITIVE TRADE.

YET: Continued contention over agriculture and clothingant textiles issues of concern to developing countries.

BASED ON SPECIFIC PHILOSOPHY DOMINATING GPE =NEO-LIBERAL

BASED ON LIBERAL VALUE OF INSTITUTIONS AND LAW

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