march 27 notes - M ax NW = CS PS GR Government doesn't...

Max NW = CS + PS + GR
Government doesn't maximize this!
214 votes to pass NAFTA or GATT. w/o labor contributions
w/o any contribution: 256 vote, NAFTA would have passed anyways
Smoot-Hawley
international trade organization was a treaty. It failed, it had binding powers
GATT was agreement to reduce tariffs
Two countries negotiate- bilateral. This presents problem for them engaging in trade with
rest of world. This might help other countries, because of free rider problem. Example is US
and Canada set 10% on coffee. Colombia might benefit from it.
Quota licenses are the problem
Move to tariffs
Prove that domestic producers cant compete with importers because of “surge in imports”
and you can protect to “bide some time”
TRIPS: trade-related aspects of intellectual property. Problem of patents. 20 years for every
country
MFN Example
The EU has a 10% tariff on medicine coming from Canada, but 15% on medicine coming
from mexico. You cant decrease it and choose the countries.
Right to retaliate
Exception: free trade
Customs Union- common 1 type of international trade rules