Die Ursprünge und aktuelle Problemstellungen des multilateralen Handelssystems.
The multilateral trade Regime, the World Trade Organization, arrived, as
so often in its past, at a cross road. The Doha Development Agenda is now in its
7th year, once again cancelled and once again tried to be revitalized. How come?
On the one hand a broad consensus exists, saying that free trade is better for
everyone. From farmers and fishermen to bankers and C.E.O.’s, everybody from
white to blue-collar is supposed to gain welfare from global free trade. And those
who don’t even have collars can get some through trading. China’s rise in the last
decades is not imaginable without global trade. Almost 1 billion people profit
from that and that is just one country!
But on the other hand there are protectionist measures, bilateral
overreaching treaties, subsidies for bankrupt industries and non-tariff barriers to
trade installed from those countries that benefitted the most of the liberalizations
of the past decades.
Today the small ones, the former colonies, the developing countries try to
pick their piece of the pie and are not willing to let the industrialized countries
break the rules they used to engage years ago. They are not willing to take the
inequality anymore and raise their voices in one of the only forums they have,
where they’re treated on a one to one basis.
This essay will give an overview about the historic development from the
General Agreement on Tariffs and Trade to the World Trade Organization. Their
structures as well as their development will be pointed out. After exploring
libraries full of literature to the topics of GATT and WTO, the remarkable text by
Robert Winham about “The evolution of the global trade regime” appeared to be
the most comprehensive, intelligible and workable. Therefore it is one of the main
sources of this essay. Last but not least regionalization and preferentialism will be
explained in their different facets, concluding with two contrary empirical
examples for economic and political integration.
[...]
Table of Contents
Introduction
1. Historic Development
1.1 From Ricardo to RTAA
1.2. Establishing the GATT
2. General Agreement on Tariffs and Trade
2.1. Preface
2.2. Precepts of the regime
2.3. Prominent negotiation rounds
2.3.1. Kennedy-Round and Tokyo-Round
2.3.2. The Uruguay-Round
3. The World Trade Organization
3.1. Organization, Elements
3.2. The Doha Development Agenda
4. Preferentialism and Regionalization
4.1. Types of Regional Trade Agreements
4.2. Why RTA's?
4.3. Regional Integration
4.4. Empirical Evidence
4.4.1. NAFTA
4.4.2. EU
5. Conclusion
Objective and Research Scope
This essay examines the historical evolution of the global trade regime, transitioning from the General Agreement on Tariffs and Trade (GATT) to the World Trade Organization (WTO), while critically evaluating the contemporary rise of regionalization and preferential trade agreements as alternatives to multilateralism.
- Historical analysis of the transition from GATT to WTO.
- Evaluation of WTO structure, dispute settlement, and the Doha Development Agenda.
- Examination of the theoretical and practical drivers of regional trade agreements (RTAs).
- Comparative empirical assessment of economic integration through NAFTA and the European Union.
Excerpt from the Book
3.1. Organization, Elements
This “formally contracted body of rules backed up by a judicial system and a minimum of political structure”17 was established through the Marrakesh-Agreement and founded on January 1st in 1995, now counting 152 member countries. Decision making is based on a consensual basis, which de facto means that every member has a veto. Important for the current negotiation round, the Doha-Round, or Doha Development Agenda (DDA), is the procedure of single undertaking, meaning that nothing is agreed, until everything is agreed. Up to the Tokyo-Round a country was able to accept just single packages of many which were decided, but today a country has to accept all. In practice this means that for example if Turkmenistan wants to join the WTO, it also has to sign every part of it (TRIPS, TRIMS and so on), not only GATT 1994.
Very remarkable to the WTO is its relatively small secretariat; only about 600 people work directly at the WTO-headquarter in Geneva. For comparison, at the headquarters of the International Bank for Reconstruction and Development (World Bank) work about ten times as many people18. Hence, the WTO is a member-driven organization; the secretariat “just” takes care of the daily business and makes sure that the WTO fulfils its functions, which are:
- Implementation and administration of the Uruguay Round Agreements
- Maintenance of a forum for further negotiations
- Administration of Dispute Settlement Body
- Administration of the Trade Policy Review Mechanism
- Liaison with IMF and World Bank.
Summary of Chapters
Introduction: Provides a background on the challenges facing the multilateral trade regime, specifically the stalled Doha Development Agenda, and introduces the paper's core themes.
1. Historic Development: Traces the origins of modern trade policy from Adam Smith and David Ricardo through the enactment of the Reciprocal Trade Agreements Act and the post-WWII establishment of the GATT.
2. General Agreement on Tariffs and Trade: Analyzes the fundamental precepts of the GATT, including the Most-Favored-Nation principle, National Treatment, and the significance of key negotiation rounds.
3. The World Trade Organization: Explores the institutional structure of the WTO, its decision-making processes, the judicial role of the Dispute Settlement Body, and the complexities of the Doha Development Agenda.
4. Preferentialism and Regionalization: Investigates why nations pursue preferential trade agreements despite their potential conflict with multilateral goals, providing empirical case studies of NAFTA and the EU.
5. Conclusion: Synthesizes the findings by highlighting the dilemma between globalism and regionalism in an increasingly multipolar world order.
Keywords
GATT, WTO, Free Trade, Multilateralism, Regionalization, Preferential Trade Agreements, Doha Development Agenda, NAFTA, European Union, Protectionism, Comparative Advantage, Dispute Settlement, Globalization, Tariff Reduction, Economic Integration.
Frequently Asked Questions
What is the primary focus of this essay?
The essay explores the evolution of the global trade regime from the GATT to the WTO and analyzes the motivations and implications of the growing trend toward regionalization.
What are the central thematic areas covered?
Key areas include the historical foundations of trade liberalization, the structural challenges of the WTO, the rise of regional trade agreements (RTAs), and the impact of integration on developing and industrialized nations.
What is the core research objective?
The research aims to understand why countries move toward regionalism when a global consensus on trade is theoretically beneficial, and whether the current WTO framework remains effective in a multipolar environment.
Which scientific methodology is employed?
The paper utilizes a qualitative research approach, drawing upon historical analysis, political economy literature, and empirical trade statistics to contextualize current global trade developments.
What topics are discussed in the main body?
The main body covers the development of trade agreements from the RTAA, the mechanics and limitations of the WTO, and detailed case studies on the economic integration strategies of NAFTA and the EU.
How would you characterize this work with keywords?
The work is defined by terms such as trade policy, multilateralism, WTO, regionalization, economic hegemony, and international political economy.
What role does the Dispute Settlement Body (DSB) play?
The DSB acts as the judicial arm of the WTO, allowing members to challenge trade violations; however, it is described as a "double-edged sword" that may favor larger, more powerful economies over smaller ones.
Why is the "single undertaking" principle important?
It forces all members to accept every part of a negotiation package, preventing the pick-and-choose approach of previous rounds and complicating the agreement process, particularly for the Doha Development Agenda.
How does the author view the future of the WTO?
The author expresses skepticism, noting that the organization relies on member consensus, which is increasingly difficult to achieve due to shifting power dynamics between the US, China, and the EU.
- Citation du texte
- Alexander Reck (Auteur), 2008, From GATT to WTO to what? , Munich, GRIN Verlag, https://www.grin.com/document/144369
