May 6 - May 6 World trade organization International...

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May 6 World trade organization International organization with its headquarters in Geneva, Switzerland Wtos basic purpose is to promote free and fair trade Evolved out of the GATT system. The GATT system ended in 1995 when the wto was formed. GATT - General argreement on tariffs and trade. GATT was a framework for states to negotiate trade and tariffs. The GATT system did not get universal participation. The Soviets and the eastern block countries did not participate. How does the WTO promote free and fair trade? Article 1 – countries that are members of the WTO will extend to each other the most favored nation status. This is a nondiscrimination clause . Can’t put a 25% tax on Italian shoes and a 10% tax on Indonesian shoes. Countries can be accused of protectionism. Article 2 – schedule of concessions Two lists Part 1 – import duty to be placed? <- look this up/find more info Part 2 – a list of commodities that originate in the poorer countries, in the developing countries. Essentially the commoditiest that originate in developing countries face a lower level of tariff. Same product. Generalized sytem of preferences. GSP system Carribean countries and rum. Simply: certain countries from certain parts of the world do not face the same level of taxation that developed countries face. This is a dual system of tariffs. Why do they do this?
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Article 3 – prohibits states from using non tariff barriers Stopping imports of beef that has mad cow disease Quota on certain products The use of subsides Article 6 – prohibits the practice of dumping Flooding another coutries market with cheap products
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This note was uploaded on 02/27/2011 for the course GOVT 446 taught by Professor 446professor during the Spring '11 term at George Mason.

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May 6 - May 6 World trade organization International...

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