Read Global Governance On Page 144 Of The Textbook And Answer The Fo
Read “Global Governance” on page 144 of the textbook and answer the following questions: a. How are GATT and the WTO related? b. Most WTO members are developing countries. What role do developing countries play in multilateral trade negotiations? 200 word minimum (2012). International economics (Vol. 1, pp. ). The McGraw-Hill Companies. In-text citation (International economics, 2012)
The relationship between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) is foundational to understanding international trade governance. GATT was established in 1947 as a multilateral agreement aimed at reducing trade barriers and promoting free trade among member countries. It provided a framework for trade negotiations and dispute resolution but lacked the formal institutional structure. In 1995, GATT was incorporated into the newly formed WTO, which expanded upon GATT’s principles by creating a comprehensive international organization responsible for overseeing global trade rules. The WTO not only continued the functions of GATT but also introduced new agreements and mechanisms for dispute resolution, enforcement, and trade policy monitoring. Essentially, GATT served as the basis for the WTO's legal framework, with the latter being a broader institution that institutionalized and expanded the scope of international trade rules initially negotiated under GATT.
Most WTO members are developing countries, which play a crucial role in multilateral trade negotiations. Developing countries often seek to promote their economic growth by integrating into the global trading system. They participate actively in negotiations to secure preferential access to markets and to seek special and differential treatment provisions that recognize their developmental needs. These countries often advocate for increased access to developed country markets and protections for their nascent industries. Their participation influences the agenda setting and outcomes of trade negotiations significantly. Moreover, as they become more integrated into the global economy, developing countries contribute to shaping trade rules, pushing for reforms that address issues such as agricultural subsidies, intellectual property rights, and technology transfer. Their role underscores the growing importance of inclusive multilateralism in trade policymaking, reflecting an evolution towards a more equitable and representative global trading system (International economics, 2012).
References
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