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 exporter’s 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