Econ 161 - MidtermReview:Econ161 16:45 TradeAgreements WTO

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Midterm Review: Econ 161  16:45 Trade Agreements  WTO Preferential Trade Agreements: Agreements between to countries to reduce  tariffs o This type of trade agreement is  not allowed among WTO members who  are obligated to grant most-favored nation status to all other WTO  members. Under the most-favored nation (MFN) rule countries agree not  to discriminate against other WTO member countries. Thus, if a country's  low tariff on bicycle imports, for example, is 5%, then it must charge 5% on  imports from all other WTO members. Discrimination or preferential  treatment for some countries is not allowed. The country is free to charge  a higher tariff on imports from non-WTO members, however. Members of the WTO are not allowed to ratify preferential trade agreements with  other WTO members. Under the MFN (most favored nation) rule countries agree  to not discriminate against other members of the WTO. Countries are however 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/14/2011 for the course ECON 161 taught by Professor Muendler during the Spring '11 term at San Diego.

Page1 / 4

Econ 161 - MidtermReview:Econ161 16:45 TradeAgreements WTO

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online