Short Note On General Agreement On Tariffs And Trade

However, their main achievement was the adoption of Part IV of the GATT, which freed them from the corresponding reciprocity with developed countries in trade negotiations. In the view of many developing countries, this was a direct consequence of UNCTAD I`s request for a better trade agreement for them. In the end, tariffs fell by 35%, with the exception of textiles, chemicals, steel and other sensitive products; In addition to a 15% to 18% reduction in tariffs on agricultural and food products. In addition, the chemical negotiations resulted in an interim agreement on the abolition of the US selling price (ASP). This was a method of assessing certain chemicals used by these countries for the institution of import duties, which gave domestic producers a much higher level of protection than indicated under tariff conditions. The Uruguay cycle began in 1986. It was the most ambitious cycle to date that hoped to extend GATT`s jurisdiction to important new areas such as services, capital, intellectual property, textiles and agriculture. 123 countries participated in the cycle. The Uruguay Round was also the first round of multilateral trade negotiations in which developing countries played an active role.

[16] In general, GATT members agree that reducing tariffs and eliminating discrimination in international trade should be done on a reciprocal and mutually beneficial basis. THE GATT and its successor, the WTO, have succeeded in reducing tariffs. Average tariff levels for large GATT participants were about 22% in 1947, but were 5% after the Uruguay Round of 1999. [4] Experts attribute some of these tariff changes to the GATT and the WTO. [5] [6] [7] While services currently account for more than two-thirds of world output and employment, they account for no more than 25% of total trade, as measured by the balance of payments. But this apparently modest proportion should not be underestimated. Indeed, the balance of payments statistics do not cover one of the types of services defined in the GATS, i.e. the supply by commercial presence in another country (mode 3). Although services are increasingly being exchanged in their own legislation, they also serve as essential inputs for the production of goods and, therefore, services, when value-added, account for about 50% of world trade. Anti-dumping legislation Laws protecting domestic importers that can prove that products imported abroad are “dumped” in the domestic market. protect domestic import competitors, which can demonstrate that products imported abroad are “dumped” in the domestic market. Since dumping is often considered an unfair business practice, anti-dumping law is referred to as an unfair trade law.

Dumping is defined in different ways. Dumping usually means selling a product at an unfair or less reasonable price. In particular, dumping is defined as (1) sales in a foreign market at a price below the domestic market, (2) sales in a foreign market at a price below the average cost of production, or (3) where there are no domestic sales, sales in a foreign market at a price below the price calculated in another foreign market. The percentage to be increased to obtain a fair or reasonable price is considered a margin of dumping. For example, if a company sells its product at $12 in its home market but sells it for $10 in a foreign market, the dumping margin is 20%, since a price increase of $20 is increased to $12.