Lecture 11: International Trade Blocs and Agreements

General Agreements on Tariffs and Trade

signed by 23 countries in October 1947 (after World War II), and became law on January 1, 1948 to make international trade easier; provides a system to arbitrate commercial disputes among nations and a framework for multilateral negotiations to reduce tariff barriers

General Agreements on Tariffs and Trade

in 1995, it was absorbed into the WTO with 125 nations signed (90% of global trade)

Most Favored Nation

a principle of non-discrimination (GATT Article 1) treats GATT members as equals to each other, and removes differences based on power

Most Favored Nation

if a country negotiates a lower tariff to another country, it applies to all GATT members

Dumping

country exports product lower price in importing market than exporters domestic market

Dumping

legal under WTO unless it shows negative effects to domestic workers

Trade Related Intellectual Property Rights

a WTO agreement on IPR, minimum standards agreement which allows WTO members to provide more extensive protection of their intellectual property

Trade Related Intellectual Property Rights

facilitates international trade by framing a system protecting IP in innovation, technology transfer, and public welfare

Intellectual Property

refers to the creations of the mind (inventions, literary and artistic works, designs, as well as symbols, names or images used in commerce)

Intellectual Property Rights

protection given to IP domestically and internationally (patents, copyrights, trademarks); provides balance between protecting individual interests while promoting societal interests