Conventional Tariff

Introduction

For centuries, economies around the world have adopted tariffs and other trade restrictions to protect their own industries and promote their own interests. This is done in a number of ways, such as import quotas, export subsidies and customs duties. The World Trade Organization (WTO) is the primary international body which sets the rules and regulations governing world trade. The WTO sets the General Agreement on Tariffs and Trade (GATT) which is the set of international agreements that set the rules for international trade between its members.

Historical Background

The GATT has its roots in the negotiation of the Bretton Woods Agreement of 1945, one of the major agreements in world affairs today. It was negotiated after the Second World War and was intended to facilitate and regulate world trade. The domestic and international effects of the agreement included strengthening international competition, reducing disparities between countries, facilitating trade and promoting economic growth. The agreement also provided for the establishment of the GATT, which was designed to serve as an umbrella agreement covering tariffs and other restrictions related to trade.

GATT Terms

The GATT sets out a number of terms and principles which are binding on all signatories. These include most-favoured nation (MFN) principles which require equal treatment of trading partners and national treatment principle, which sets out that imported goods should not be discriminated against in terms of taxes, tariffs or other restrictions. It also sets out some exceptions such as regional trading blocs, protection of infant industries, safeguards and anti-dumping measures.

The GATT also sets out principles relating to the negotiation of trade agreements such as the conduct of tariff negotiations and dispute settlement procedures. The agreements should be mutually beneficial, should provide foreign investors with a degree of legal protection and certainty, should adopt multilateral rather than bilateral approaches and should provide for progressive liberalization in areas such as services and intellectual property.

Impact of GATT

The GATT has been credited with stimulating economic liberalization, promoting growth and preventing worldwide recession in the post-war decades. Its application of the MFN principle encouraged non-discriminatory trading practices and its enforcement of national treatment provided a level playing field for imports and exports. Its liberalization of trading rules also had the effect of encouraging foreign direct investment, as companies were able to more readily access new markets. More recently, the WTO and its predecessor, the GATT, has been criticized for its lack of enforceability, failure to tackle the issue of poverty, environmental degradation, and the unequal distribution of power in global markets.

Conclusion

Since its inception, the GATT has been an important agreement in international trade and has played a major role in liberalizing trade, promoting foreign direct investment, encouraging growth and reducing disparities in economic capacities. It has also come under criticism in recent years, particularly around its lack of enforceability and its failure to address some of the major global issues such as poverty and the unequal distribution of power in global markets. Despite these criticisms, it is clear that the GATT has been an influential agreement in the international trading system and has increased global prosperity and stability.

关于The North American Free Trade Agreement（NAFTA）

The North American Free Trade Agreement (NAFTA) is a trade agreement between Canada, Mexico and the United States that was signed in 1992, the aim of which was to increase economic cooperation among the three countries. The agreement entered into force on January 1, 1994, and has dramatically increased the flow of goods, services and investment between the three countries.

NAFTA is often referred to as one of the most successful free trade agreements in the world, as it has increased trade and investment among the three countries and allowed them to gain access to each other’s markets. It has also led to a reduction in tariffs, which is particularly beneficial to consumers as it has made goods and services cheaper. In addition, NAFTA has facilitated the transfer of technology and the growth of production networks that link companies in the three countries.

Although NAFTA has led to increased economic cooperation between the three countries, there have been some criticisms of the agreement. These include the potential for job losses due to the increased competition it has created, as well as environmental concerns related to the trade of goods and services. However, the overall impact of NAFTA has been positive and it has been said to have helped to raise incomes and reduce poverty in the three countries.

Overall, NAFTA has had a positive impact on the economic cooperation between the three countries. The increased trade and investment that the agreement has facilitated has allowed them to gain access to each other’s markets, resulting in cheaper goods and services. In addition, the agreement has facilitated the transfer of technology and the growth of production networks. However, there have been some criticisms about the agreement, including potential job losses and environmental concerns.