International Marketing

GATT/WTO
The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade

its purpose was the "substantial reduction of

tariffs and other trade barriers and the

elimination of preferences, on a reciprocal and

mutually advantageous basis."

 GATT was signed in 1947 with 23 founder countries and lasted until 1994, when it was replaced by the World Trade Organization in 1995.

 GATT's main function is to promote fair trade among member nations by reducing and regulating trade tariffs and by providing a common way to solve any sort of trade dispute

 The 75 existing GATT members and the European Communities became the founding members of the WTO on 1 January 1995 The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade

 It is an organization for trade opening.

It is a forum for governments to negotiate

trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules.

 Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other. WTO agreements- legal ground rules for international commerce./contracts

 to help trade flow as freely as possible means removing obstacles the confidence that there will be no sudden changes of policy

Fact file
Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94)

Membership: 157 countries on 24 August 2012

Budget: 196 million Swiss francs for 2011 Secretariat staff: 640 Head: Pascal Lamy (Director-General)

 Functions:
Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies

Technical assistance and training for developing

countries Cooperation with other international organizations

 Japan launches WTO dispute against China over stainless steel Japan has launched a complaint against China at the World Trade Organization (WTO) to challenge anti-dumping duties levied by China on Japanese exports of high performance stainless steel seamless tubes

Trade Related Investment Measures (TRIMs)

The Agreement on Trade Related Investment Measures (TRIMs) are rules that apply to the domestic regulations a country applies to foreign investors, often as part of an industrial policy.

 one of the four principal legal agreements of the WTO trade treaty. TRIMs are rules that restrict preference of domestic firms and thereby enable

international firms to operate more easily within foreign markets

Trade Related Aspects of Intellectual Property Rights (TRIPS)

TRIPS requires member states to provide strong protection for intellectual property rights Patents, copyrights

Most Favored Nation Clause(MFN)

A level of status given to one country by another and enforced by the World Trade Organization. A country grants this clause to another nation if it is interested in increasing trade with that country. Countries achieving most favored nation status are given specific trade advantages such as reduced tariffs on

imported goods.

Trading Blocks
A trading bloc is a group of countries that join together in some form of agreement in order to increase trade between themselves and/or to gain economic benefits from cooperation on some level.

Types of trading bloc

Free Trade Area
Free Trade Areas (FTAs) are created when two or
more countries in a region agree to reduce or

eliminate barriers to trade on all goods coming

from other members.

 Customs Union
A customs union involves the removal of tariff barriers
between members, plus the acceptance of a common

(unified) external tariff against non-members.

This means that members may negotiate as a single bloc with 3rd parties, such as with other trading blocs, or with the WTO.

 Common Market
This means that all barriers to trade in goods,
services, capital, and labour are removed. In

addition, as well as removing tariffs, non-tariff

barriers are also reduced and eliminated

harmonisation of micro-economic policies

Trade Blocks
EU ASEAN SAARC NAFTA