Lecture on World Trade System Development

Post-World War II Economic Overhaul

• 1948: End of WWII, need to avoid past mistakes (1920s and 1930s trade barriers).
• Trade barriers led to economic ruin.
• Need for stability and global community.

Creation of International Organizations

• GATT (General Agreement on Tariffs and Trade) started with 23 countries.
  • Aimed to restore economic cooperation and peace.
  • 50 years later, evolved into the WTO with 132 members.

Purpose and Impact of GATT

• Brought order and rules to world trade.
• Prevented larger countries from exploiting smaller ones.
• Provided a forum for dispute settlement and tariff negotiations.
• Achievements:
  • Better investment climate.
  • Job creation.
  • Growth in world trade.

Challenges and Reforms

• 1970s oil price rise led to economic challenges.
• 1986 Uruguay Round in Punta del Este:
  • Longest negotiation (7.5 years).
  • Resulted in significant reforms and the creation of the WTO in 1994.

Achievements of the Uruguay Round

• Creation of WTO with legal status.
• Agreements on:
  • Agriculture.
  • Textiles.
  • Services and intellectual property.
  • Dispute settlement.
• Resulted in broad coverage and reduction of trade barriers.

Ongoing Negotiations and Agreements

• 1996 Singapore Conference:
  • Boosted negotiations.
  • 1997 agreements on telecommunications, IT, and financial services.
• Ongoing and future negotiations in agriculture and services.

Economic Growth and Challenges

• Global trading system vital for economic growth.
• Open policies led to convergence in wealth levels among developed countries.
• Ongoing issue: poverty in least developed countries.
• Assistance by WTO, IMF, World Bank:
  • Training and industrial production improvement.
  • Enhancing market access for least developed countries.

Influence and Concerns

• Governments reflect public concerns through WTO.
• Trade liberalization boosts living standards and job creation.
• Importance of balancing national and international policies.

Future Challenges

• Adapting to new information technologies.
• Incorporating new countries (e.g., China, Russia).
• Supporting regional economic groups.
• Focusing on poorest countries' interests.
• Building a universal, rule-based trade system.

Conclusion

• Need for non-discrimination and consensus in economic relations.
• The goal is a safer world through cooperation and adherence to agreed rules.