ch07Trde Regulations and Industrial Policie(国际经济学-(By Robert J. Carbaugh)s.pptVIP

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ch07Trde Regulations and Industrial Policie(国际经济学-(By Robert J. Carbaugh)s.ppt

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Carbaugh, Chap. 7 International EconomicsBy Robert J. Carbaugh9th Edition Chapter 7: Trade Regulations and Industrial Policies The US and international trade Smoot-Hawley Tariff Act (1930) High point of US protectionism Reciprocal Trade Agreements Act (1934) Introduced “most favored nation” (MFN) clause (now called “normal trade relations”) General Agreement on Tariffs and Trade [GATT] (1947) World Trade Organization (1995) GATT - Postwar trade liberalization Founded on the principle of non-discrimination, including: Normal Trade Relations treatment National treatment of imported goods Included trade dispute resolution mechanisms Committed signatories to use tariffs rather than quotas GATT - Postwar trade liberalization (2) Started regular negotiations to reduce tariffs and NTBs Exceptions allowed nations to sidestep the rules when they felt threatened, without abandoning the entire process GATT negotiations Early bilateral agreements Kennedy Round (1964-67) - first multi-lateral negotiations; focus on tariff cuts Tokyo Round (1973-79) - focus on lowering non-tariff barriers Uruguay Round (1986-93) - covered new issue areas (intellectual property, services, agriculture), included developing nations GATT becomes WTO GATT agreement became World Trade Organization in January 1995 WTO members must adhere to all agreements negotiated under GATT (not pick and choose) Covers trade in goods, services, intellectual property and investment WTO strengthens GATTs dispute-settlement mechanisms Controversy over WTO Worries about infringement on national sovereignty Concern about trade liberalization undermining environmental protection WTO became a target for broader opposition to globalization US trade remedy laws Escape clause Countervailing duties Anti-dumping duties Unfair trade practices (Section 301) Protection of intellectual property Trade adjustment assistance Effects of dumping, subsidies, and remedies Effects of dumping, subsidies, and remedies US “industrial policy