Question

Explain two ways that negotiations between 1949 (Annecy) and 1973 (Tokyo) changed the scope of GATT. What was the relationship between the Prebisch-Singer thesis and the New International Economic Order? Which actors and interests does Stephanie Rickard emphasize in her analysis of President Trump’s tariff policy? Why does she think he may be changing course on imposing tariffs on China? Compare the effectiveness of the International Trade Organization and the World Trade Organization.

Answer 1

After watching the impact of World War 2 on all major powerful and small countries in terms of their trade and economic growth, GATT was formed for bringing negotiations in trade among member countries. Moreover, the Great depression of 1930 teaches a lesson that protectionist policy also hinders economic growth. So there was a need to negotiate trade policies as well as reduce tariffs for economic growth.

1949-Annency Round - It was the first round of negotiation headed by GATT held in Annecy. Under this negotiation, 13 members of GATT became ready for 5000 tariff concessions

1973:Tokyo Round- On this negotiation 102 members made agreements on both tariff and no-tariff issues. Finally in November 1979,it was decided not to increase current tariffs which covers more than 300 billion dollar of trade. Moreover items like subsidies, government procurement, trade in dairy products and civil aircrafts are brought under GATT.

The prebsich-singer thesis stated that in the long run, the prices of primary goods like tea, coffee, cola increases as compared to manufactured goods like car, various machines. So the country who export primary goods may loose in terms of trade so they have to import large quantities of exports to pay for imports. If the demand and price of primary goods fall in the whole economies of the world then it results in trade deficit

Thus the NIEO that is New international economic order was proposed by many developing countries in 1970s through United nations conference on Trade and development. It was promote their interest by improving the terms of trade which was earlier not good for countries exporting primary goods. It also provide development assistance on times of need. It also helps by encouraging developed countries fir tariff reduction