GATT - WTO.PPT

GATT - WTO General Agreement on Tariffs and Trade Context: Pre-war depression “cured” by WWII - unlikely to be a regular economic policy option. Depression caused by protectionism. Depressions causes political instability. Political instability causes war Ergo: Need to end protectionism Harry S. Truman, US President General Agreement on Tariffs and Trade Thus - US leads campaign for postwar trade regime based upon: Classic (economic) liberal principle of comparative advantage. In effect: Tariffs would be lowered Each country to specialise in production of those goods it produced best (tradi