VARIOUS TRADEVARIOUS TRADEORGANISATIONSORGANISATIONSREGIONAL & INTERNATIONALAGREEMENTSMMA 3RDSEMESTERRETAILShahnawaz IslamGhousia IslamShreya BanerjeeFarhin
WHAT IS INTERNATIONAL TRADE?It Is The ExchangeOf Goods &ServicesBetweenCountries.
Trade organizations arevoluntary associationsbetween countries, formedwith the purpose ofliberalizing oropening trade between thosecountries. This is done withthe intention of providingeconomic benefit to allcountries involved.WHAT ARE TRADE ORGANISATIONSFOR?
The General Agreement on Tariffsand Trade (GATT) is a multilateralagreement regulating internationaltrade. It was negotiated duringthe UN Conference on Trade andEmployment and was the outcome ofthe failure of negotiating governmentsto create the International TradeOrganisation (ITO).General Agreement on Tariffs andTrade (GATT)GATT was signed in 1947 and lasted until 1993, when itwas replaced by the World Trade Organisation in 1995.
Name YearCountriesSubjects covered AchievementsGenevaGenevaAprilApril194619462323 TariffsTariffsSigning of GATT, 45,000 tariff concessionsSigning of GATT, 45,000 tariff concessionsaffecting $10 billion of tradeaffecting $10 billion of tradeAnnecyAnnecyAprilApril194919491313 TariffsTariffsCountries exchanged some 5,000 tariffCountries exchanged some 5,000 tariffconcessionsconcessionsTorquayTorquaySeptembSeptember 1950er 19503838 TariffsTariffsCountries exchanged some 8,700 tariffCountries exchanged some 8,700 tariffconcessions, cutting the 1948 tariff levels by 25%concessions, cutting the 1948 tariff levels by 25%Geneva IIGeneva IIJanuaryJanuary195619562626 Tariffs, admission of JapanTariffs, admission of Japan $2.5 billion in tariff reductions$2.5 billion in tariff reductionsDillonDillonSeptembSeptember 1960er 19602626 TariffsTariffsTariff concessions worth $4.9 billion of worldTariff concessions worth $4.9 billion of worldtradetradeKennedyKennedy May 1964May 1964 6262 Tariffs, Anti DumpingTariffs, Anti DumpingTariff concessions worth $40 billion of worldTariff concessions worth $40 billion of worldtradetradeTokyoTokyoSeptembSeptember 1973er 1973102102Tariffs, non-tariff measures,Tariffs, non-tariff measures,"framework" agreements"framework" agreementsTariff reductions worth more than $300 billionTariff reductions worth more than $300 billiondollars achieveddollars achievedUruguayUruguaySeptembSeptember 1986er 1986123123Tariffs, non-tariff measures, rules,Tariffs, non-tariff measures, rules,services, intellectual property,services, intellectual property,dispute settlement, textiles,dispute settlement, textiles,agriculture, creation of WTO, etc.agriculture, creation of WTO, etc.The round led to the creation of WTO, andThe round led to the creation of WTO, andextended the range of trade negotiations, leadingextended the range of trade negotiations, leadingto major reductions in tariffs (about 40%) andto major reductions in tariffs (about 40%) andagricultural subsidies, an agreement to allow fullagricultural subsidies, an agreement to allow fullaccess for textiles and clothing from developingaccess for textiles and clothing from developingcountries, and an extension of intellectualcountries, and an extension of intellectualproperty rights.property rights.DohaDohaNovembeNovember 2001r 2001141141Tariffs, non-tariff measures,Tariffs, non-tariff measures,agriculture, labour standards,agriculture, labour standards,environment, competition,environment, competition,investment, transparency,investment, transparency,patents etc.patents etc.The round is not yet concluded.The round is not yet concluded.
Discriminated against developingcountries ‘Agriculture’ was treated as aspecial. Though developed countriesremoved majority of tariff barriersyet some others still remained. US and EEC had concluded severalbilateral , discriminatory andrestrictive arrangements outsideGATT rules. It lacked enforcing mechanism GATT rules devised half a centuryago had outlived their utility.Reason for GATT failure
The World TradeOrganization (WTO) is anorganization that intends tosupervise and liberalinternational trade. Theorganization officiallycommenced on January 1,1995 under the MarrakechAgreement, replacingGATT.World Trade Organization (WTO) :
Trade negotiations Implementation andmonitoring Dispute settlement Building trade capacity To promote World Tradein a manner that benefitsevery country To enhancecompetitiveness among alltrading partners so as tobenefit consumers andhelp in global integration.Objectives of WTO :
The Agreement on TradeRelated InvestmentMeasures (TRIMs) are rulesthat apply to the domesticregulations a country applies toforeign investors, often as partof an industrial policy . Theagreement was agreed upon byall members of the World TradeOrganization .It is the name of one of the four principal legal agreementsof the WTO trade treaty.TRIMs are rules that restrict preference of domestic firmsand thereby enable international firms to operate moreeasily within foreign markets.TRIMS:
The Agreement on Trade RelatedAspects of Intellectual PropertyRights (TRIPs) is an internationalagreement administered bythe World Trade Organization(WTO) that sets down minimumstandards for many formsof intellectual property (IP)regulation as applied to nationals ofother WTO Members.The TRIPS agreement introduced intellectual property lawinto the international trading system for the first time andremains the most comprehensive international agreementon intellectual property to date. TRIPs:
United Nations Conference onTrade and Development(UNCTAD)The United NationsConference on Trade andDevelopment (UNCTAD) wasestablished in 1964 as apermanentintergovernmental body. It isthe principal organ ofthe United Nations GeneralAssembly dealing with trade,investment, and developmentissues.
Main functions of UNCTAD : To promote internationaltrade . To formulate principlesand policies oninternational trade andrelated problems ofeconomic development. To make proposal forputting policies into effect. To review and facilitate . To be available as a centrefor harmonious trade andrelated documents in thedevelopment policies ofgovernments
The International MonetaryFund (IMF) is an internationalorganisation of 188 countries (asof April 2012), that was createdon July 22, 1944 at the BrettonWoods Conference and came intoexistence on December 27, 1945when 29 countries signed theArticles of Agreement.Countries contribute money to a pool through a quota systemfrom which countries with payment imbalances can borrowfunds temporarily. Through this activity the IMF works toimprove the economies of its member countries and facilitateinternational trade.International Monetary Fund (IMF)
A trade agreement is a wideranging tax, tariff and trade pact thatoften includes investment guarantees. What are Trade Agreements ? RegionalTradeAgreements InternationalTradeAgreements
Regional Trade AgreementsRegional trade agreements(RTAs) have becomeincreasingly prevalent since theearly 1990s. As of 15 January2012, some 511 notifications ofRTAs (counting goods andservices separately) had beenreceived by the GATT/WTO. Ofthese, 319 were in force. Whatall RTAs in the WTO have incommon is that they arereciprocal trade agreementsbetween two or more partners.
What is a Trade Bloc ?A trade bloc is a typeof intergovernmentalagreement , often part of aregional intergovernmental organization , whereregional barriers to trade ,(tariffs and non-tariffbarriers) are reduced oreliminated among theparticipating states
The EU is the world’s largest trading bloc, and secondlargest economy, after the USA.The initial aim was to create a single market for goods,services, capital, and labour by eliminating barriers totrade and promoting free trade between members.The EU is the worlds largesttrading block, which makes itone of the key players in theWorld Trade Organisation. Inthe WTO, the EuropeanCommission negotiates onbehalf of the 27 countries ofthe European UnionEuropean Union (EU)
ASEAN Free Trade Area (AFTA)Asia-Pacific Trade Agreement(APTA)Central European Free TradeAgreement (CEFTA)Common Market for Easternand Southern Africa (COMESA)G-3 Free Trade Agreement (G-3)Greater Arab Free Trade Area(GAFTA)Gulf Cooperation Council (GCC)North American Free TradeAgreement (NAFTA)South Asia Free TradeAgreement (SAFTA)
The North American FreeTradeAgreement (NAFTA) is anagreement signed by thegovernmentsof Canada, Mexico, andthe United States,creating a trilateral tradebloc in North America.The goal of NAFTA was to eliminate barriers to trade andinvestment between the US, Canada and Mexico. North American Free TradeAgreement (NAFTA)
Asean Free TradeAgreement (AFTA) isa trade bloc agreement bythe Association ofSoutheast Asian Nationssupporting localmanufacturing in allASEAN countries.The primary goals of AFTA seek to:Increase ASEANs competitive edge as a production basein the world market through the elimination, withinASEAN, of tariffs and non-tariff barriers; andAttract more foreign direct investment to ASEAN.Asean Free Trade Agreement (AFTA)
The Latin American FreeTrade Association (LAFTA)was created in the 1960Treaty of Montevideoby Argentina, Brazil, Chile, Mexico, Paraguay ,Peru ,and Uruguay . The goal of the LAFTA is the creation of a free trade zonein Latin America. It should foster mutual regional tradeamong the member states, as well as with the USand Canada , the Pacific Union , the African Union , andthe European Union . Latin American Free TradeAssociation Agreement (LAFTA)
South Asian Free Trade Agreement(SAFTA)The South Asian Free Trade Area or SAFTA isan agreement reached on 6 January 2004 atthe 12th SAARC summit in Islamabad,Pakistan.The seven foreign ministers ofthe region signed a frameworkagreement on SAFTA toreduce customs duties of alltraded goods to zero by theyear 2016.The objective of the agreement is to promote goodcompetition in the free trade area and to provide equitablebenefits to all the countries involved in the contracts.
The Asia-Pacific Trade Agreement(APTA), previously namedthe Bangkok Agreement , signed in1975 as an initiative of ESCAP, is apreferential tariff arrangement thataims at promoting intra-regionaltrade through exchange of mutuallyagreed concessions by membercountries.It is the oldest preferential trade agreement betweendeveloping countries in the Asia-Pacific region. Its aim is topromote economic development and cooperation through theadoption of mutually beneficial trade liberalizationmeasures. Asia Pacific Trade Agreement(APTA)
The ComprehensiveEconomic and TradeAgreement (CETA) is aproposed free tradeand copyright agreementbetween Canada andthe European Union .CETA is Canadas biggest bilateral initiativesince NAFTA . Comprehensive Economic andTrade Agreement (CETA)
A free-trade area is a trade blocwhose member countries have signeda free-trade agreement (FTA), whicheliminates tariffs, import quotas, andpreferences on most (if notall) goods and services tradedbetween them. If people are also freeto move between the countries, inaddition to FTA, it would also beconsidered an open border. It can beconsidered the second stageof economic integration. Countrieschoose this kind of economicintegration if their economicalstructures are complementary. Free Trade Agreement
World Trade Organization agreements:General Agreement on Tariffs and TradeAgreement on AgricultureAgreement on the Application of Sanitary andPhytosanitary MeasuresAgreement on Technical Barriers to TradeAgreement on Trade Related InvestmentMeasuresAgreement on Anti-DumpingAgreement on Customs ValuationAgreement on Import Licensing ProceduresAgreement on Subsidies and CountervailingMeasuresAgreement on SafeguardsGeneral Agreement on Trade in ServicesAgreement on Trade-Related Aspects ofIntellectual Property RightsAgreement on Government ProcurementInformation Technology AgreementInternational Agreements :