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International Trade And Agreement Essay

On 10. April 2021, in Allgemein, by Norman

By the time of the Advent of World War II, artificial trade barriers had reached the peak of the 20th century. Drastic protectionist measures, compounded by a global economic depression, have led to a significant decline in international trade, which has further prolonged economic crises. However, after the end of the Second World War, the General Agreement on Tariffs and Trade (GATT) came into force, among other serious measures aimed at promoting international economic integration. Since 1948, GATT has effectively been used as an instrument to phase out and substantial barriers to international trade. These reductions were implemented as a result of the negotiation and signing of multilaterally agreed reciprocal concessions over the eight successive cycles that GATT has been able to facilitate. While the priority objective of trade liberalization is the essence of these cycles, it is less clear that negotiators are negotiating on how to share the resulting trade benefits. In addition, THE GATT has been operating since 1995 under the aegis of the World Trade Organization (WTO). With the increasing participation of countries and the diversity of tradable production that needs to be negotiated, the extent of the improvement in trade profits is increasingly important. Since its inception, the WTO has made considerable efforts and resources to continue the process of trade liberalization. However, the Doha Round, the only WTO round, has not yet made substantial progress after 12 years since the beginning of 2001. The reasons why Member States fail to reach an agreement have yet to be resolved.

In this thesis, I have highlighted both issues. First, using a number of developing countries, I empirically support trade theory; which argues that negotiators negotiate and enter into trade agreements to avoid a trade dilemma. Negotiators agree to internalize each other`s externalities to create a more efficient international trading environment. Secondly, I say that, given the participation of more asymmetrically informed Member States dealing with a much wider range of issues that all need to be resolved at the same time, it is possible to explain the delay in concluding the Doha Round by parties to the negotiations engaged in a war of attrition. A negotiator who does not know the cost of waiting and assessing the outcome of his trading partners will instead try to wait for all trading partners to admit it. As a result, the group as a whole remains an ineffective delay that could be mitigated by the imposition of a strict deadline until an agreement is reached.

 

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