International and Regional Agreements Affecting Trade.

Slides:



Advertisements
Similar presentations
WORLD TRADE ORGANIZATION (WTO) Shumeet K. Grewal.
Advertisements

First edition Global Economic Issues and Policies PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western/Thomson Learning. All rights reserved.
REGIONAL LIBERALIZATION ON SERVICES IN ACCORDANCE WITH MULTILATERAL DISCIPLINES Commercial Diplomacy Programme UNCTAD.
Understand the role of business in the global economy. 1.
Unit 13 International Marketing
Introduction to Business
Understand the role of business in the global economy.
Comprehensive Volume, 18 th Edition Chapter 7: The Legal Environment of International Trade.
Determination of Trade Policy in the real world  Political  Economical – Optimum Tariff Rate  Strategic Game Playing between Countries Negotiations.
International Trade Regulation Sunrise Case - P. 6.4 Victor H. Bouganim WCL, American University.
Trade Liberalization International Approach – GATT – WTO Regional Approach – EU – NAFTA.
8-1 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Cross-National Cooperation and Agreements.
Chapter 8 The Export-Import Sector 8-1 Copyright  2002 by The McGraw-Hill Companies, Inc. All rights reserved.
+ NAFTA: North American Free Trade Agreement William Breeman.
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Global Business Today 7e by Charles W.L. Hill.
Free Trade versus Protectionism Chapter Benefits of International Trade uIncreased variety of goods uLower costs uIncreased competition and better.
Free Trade versus Protectionism
Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 7 The Legal Environment of International Trade Twomey Jennings.
The Global Context of Business
MARKETING MANAGEMENT Stephen J. Miller Oklahoma State University MKTG 5133-MG 720 Lecture Week 4.
The Global Context of Business
1 North American Free Trade Agreement Chapter 13 © 2005 West Legal Studies in Business/Thomson Learning.
International Trade.  Exists because countries need to trade with one another.  Continues to expand Because of the reduction in trade restrictions 
1 Chapter 7 Section 1 Global Economics Objectives Describe how international trade benefits consumers. Explain the significance of currency exchange rates.
TOPIC #7 Canada and International Trade Agreements.
Chapter 8 The Export-Import Sector A Summing Up: C + I + G + X n 8-9 Net exports = X n X n = Exports - Imports.
Global Trade. Global trade is increasing Why? What is good about it? -it makes better technology available -it creates more jobs (importers-exporters)
Chapter 9 Economic Integration.
Unit 7 -TRADE International Trade Vocabulary Free Trade Trade Barriers
The Move to Freer Trade Trade Agreements. A Move to Freer Trade Post-war Re-building (1946). A international financial structure was needed to deal re-building.
Copyright ©2000, South-Western College Publishing International Economics By Robert J. Carbaugh 7th Edition Chapter 9: Regional trading arrangements.
International Trade Agreements Economics 11 Stewart.
© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Trade protectionism Two kinds of tariff –Protective –Revenue Import quota Embargo.
Unit 15 Why Nations Trade.. Section 1-4 Why Nations Trade In a recent year, about 8 percent of all the goods produced in the United States were exported,
BG Fall World Trade % 25% 50% 75% 100% exports (as % of GDP) Canada exports (trillions US$)
General Agreements on Tariffs and Trade Major Provisions of GATT: 1.Tariff: GATT obligates each country to accord nondiscriminatory, most favored nation.
World Trade Organization. Formation WTO replaced GATT in one nation, one vote (like GATT) GATT-General Agreement on Tariffs and Trade –Formed in.
24 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. International Trade.
Civics Core 100, Goal 9 The learner will analyze factors influencing the United States economy.
Chapter 7 THE LEGAL ENVIRONMENT OF INTERNATIONAL TRADE.
Free Trade VS. Protectionism. Tariffs A tariff is a tax on an import. Tariffs cause foreign items to be more expensive as a tax is charged to each item.
February 9, 2016 The Pike Law Firm, P.C..  The Trans-Pacific Partnership (“TPP”) is a trade agreement among 12 Pacific Rim countries  The TPP agreement.
International Trade and Global Economic Challenges.
International Trade. The Global Marketplace The interdependence of nations The benefits of international trade Government involvement in International.
Chapter 10: International Cooperation Among Nations International Business, 4 th Edition Griffin & Pustay.
North American Free Trade Agreement.  NAFTA was established on December 17,1992  It was signed by Brian Mulroney (Canada), Carlos Salinas de Gortari.
10-1 Chapter 10: International Cooperation Among Nations International Business, 4 th Edition Griffin & Pustay.
 Some countries create business opportunities for themselves their economies in order to avoid unnecessary competition among the group countries.  It.
Chapter 7 The Legal Environment of International Trade Twomey, Business Law and the Regulatory Environment (14th Ed.)
International Trade Chapter 20 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.
International Trade Describe the benefits of international trade.
Globalization & Business opportunities
A way of obtaining scarce resources
Part V – Growth and Development of Entrepreneurial Ventures
The Global Trade Environment
International Economics Analyze costs and benefits of global trade
Cross-National Cooperation and Agreements
International Trade LT: The benefits of international trade
Trade Barriers & Agreements
Cross-National Cooperation and Agreements
CHAPTER 4 GLOBAL ANALYSIS
Free Trade Agreements.
Nontariff Barriers to Imports
International Trade and The Global Marketplace
Trade Barriers.
Cross-National Cooperation and Agreements
Trade - WTO.
Trade Barriers.
Trade.
International Trade Chapter 4.1 (2006 Edition)
Presentation transcript:

International and Regional Agreements Affecting Trade

Principal objectives of the GATT/WTO:  Nondiscrimination: Members must be treated in the same way with respect to import-export duties and charges.  Trade liberalization: Sponsorship of periodic conferences to reduce trade barriers  Settlement of trade disputes  Trade in goods and services: The WTO rules were originally intended to govern trade in merchandise (primarily imports). The rules have, however, been extended to include trade in services and trade-related intellectual property. The GATT and the WTO

The scope of coverage for NAFTA includes:  Market access for goods: No discrimination in favor of domestic goods. Application of national treatment standard. Provides for gradual elimination of tariffs over fifteen years (except for certain agriculture products). Goods must be wholly or substantially made within member countries to qualify for preferential market access. The North American Free Trade Agreement (NAFTA)

 Market access to services: Application of national treatment standard. Provides for gradual elimination of restriction on services trade during the transitional period.  Investment: Application of national treatment standard, prohibition on the imposition of performance requirements. Exceptions made in the case of certain strategic industries such as energy (Mexico), cultural industries (Canada), nuclear energy and broadcasting (all three countries). The North American Free Trade Agreement (NAFTA) (cont.)

 Protection of intellectual property rights such as patents, trademarks, copyrights, trade secrets, etc.  Government procurement: Equal treatment to all member country providers for all goods and services procured by federal government entities (some exceptions apply).  Safeguards: Emergency actions (temporary) to protect domestic industry if a surge in imports causes serious injury to domestic industry.  Standards: No use of standards as a disguised restriction to trade.  Dispute settlement: Consultations, mediation, conciliation, etc. The North American Free Trade Agreement (NAFTA) (cont.)

 Overall increase in trade between members: Intra- NAFTA trade jumped from $304 billion in 1993 to $626 billion in 2002 compared to NAFTA’s trade with the rest of the world, which increased by only 42 percent (from $536 billion to $762 billion) during the same period.  Increase in the U.S. trade deficit: The U.S. merchandise trade deficit with Canada and Mexico has quadrupled since NAFTA.  Preliminary Assessment of NAFTA

 NAFTA’s impact on jobs is uncertain  Substantial increase in foreign investment in all countries Preliminary Assessment of NAFTA (cont.)

Major objectives of the European Union:  To create free trade and a common external tariff among members  To abolish restrictions on the free movement of all factors of production  To establish common policies in the areas of transport, agriculture, competition, etc. The European Union