Lecture 3: Darren Hoad
Regional economic agreements
Multinational / corporate landscape
North / South / Core Periphery
The Washington consensus
Trade worth $ 9.1 trillion in 2005 (WDM)
Trade historical Importance -Trading
Empires / trading exploitation
Emergence of Centre Periphery
relationships -Colonialism, Imperialism
Reciprocation and Comparative Advantage
Trade as motor of development ?
Trade 2010 ?
EU: Complete elimination of restrictions on goods flows,
capital flows, and labor flows within Europe.
NAFTA: Free trade among Canada, US, Mexico.
Andean Pact: Bolivia, Colombia, Ecuador, Peru,
Mercosur: Argentina, Brazil, Paraguay, Uruguay.
Free Trade Area of the Americas (FTAA): 34 nations from
Alaska to Argentina, planned start by 2005.
ASEAN: Brunei, Indonesia, Laos, Malaysia, the Philippines,
Myanmar, Singapore, Thailand and Vietnam.
APEC: US, Canada, Japan, China, many in S.E. Asia,
African trade blocs: 9 different trade blocs.
Seattle Ministerial 1999
1. Founded in 1995 (1948), the WTO is an association of
member states (140+)
2. Based in Geneva, the WTO has a permanent
Secretariat and an enforcement body (the Dispute
3. Trade Rounds
4. Expanding free trade concessions equally to all
5. Establishing freer global trade with fewer barriers
6. Making trade more predictable through established
7. Making trade more competitive by removing subsidies
GATS – General Agreement on Trade in Services
AOA – Agreement on Agriculture
TRIPS – Trade Related Intellectual Property
GATT – General Agreement on Trade and Tarrifs
Progressive Liberalisation – ongoing process
Most Favoured Nation Treatment (MFN)
National Treatment (NT)
General Exceptions (Article XX)
According to the World Wide Fund for Nature
(WWF), the WTO is responsible for
undermining 7 of the world’s most important
(MEAs) environmental treaties.
How do you like your Dairy products –
chemical based or organic ? The WTO found
against the European Union when they tried to ban
hormone treated beef from entering Europe. Lobbied
by American beef producing groups, the WTO forced
the EU to accept harmful hormone treated beef
(allegedly responsible for accelerating puberty and
WTO ruled against the United States Marine Mammal
Protection Act, which banned the import of Tuna from
countries, whose fleets use fishing methods that kill
The US Endangered Species Act banned shrimp imports from
countries that do not use devices (TEDS) designed to protect
endangered sea turtles out of shrimping nets. The WTO
ruled against the US ban
Venezuela challenged the US through the WTO over the
Clean Air Act, which demands clean gasoline. The WTO
agreed and forced the US govt. And EPA to rewrite its anti-
Chiquita Banana Case