REGULATION OF INTERNATIONAL TRADE WITHIN THE FRAMEWORK OF THE WORLD TRADE ORGANIZATION
Tashkent 2011
Foreword
This textbook on the course "Regulation of International Trade within the framework of the WTO "is designed for students of higher education institutions, specializing in International Economics and Foreign Trade.
The textbook includes basic notions of lectures, questions for self-control and class discussions, case-studies, illustrations, and reference books on relevant topics.
The aim of the course is to introduce students to basics of WTO regulation on trade in goods and services, intellectual property rights and investments.
The objectives of the course are:
- to familiarize students with the basic institut
ional mechanisms regulating International Trade;
- to introduce students to basic principles and concepts of the World Trade Organization;
- to develop students 'analytical abilities on issues of foreign trade regulation;
- to enable students to evaluate compatibility foreign trade regime of Uzbekistan with WTO rules.
Throughout the classes students will be required to engage in classroom and group discussions, prepare an individual research paper on particular issues of WTO, and pass computer based test.
Classes will be taught using advanced teaching methods such as interactive education, class and small group discussions, case studies, role playing, presentations with usage of up-to-date IT technologies.
Content
Lecture 1. Introduction to the course "Regulation of International Trade under WTO rules"
1. Reasons for imposing trade restriction - individual country perspective
2. Historical background of the WTO
3. Reasons for replacing the GATT by the WTO
Questions
References
Lecture 2. WTO - structure, aims and principles
1. Objectives, main functions, principles
2. Organization structure
3. Accession and Decision-Making procedure
4. Trade policy review mechanism (TPRM) of the WTO
5. Plurilateral trade agreements of the WTO
6. Main difference between the WTO and GATT
Questions
Reference
Lecture 3. Regulation of Trade in Goods (GATT system)
1. Trade without Discrimination
2. Progressive trade liberalization and Transparency
3. Rules on Fair Competition
4. Encouraging Development and Economic Reform
5. Single undertaking
Questions
References
Lecture 4. Issues on market access
1. Tariffs
2. Safeguards
3. Balance-of-Payments Provisions
4. Technical Barriers to Trade
5. Sanitary and Phytosanitary Measures
6. Trade-Related Investment Measures (TRIMs)
Questions
References
Lecture 5. Measures against Unfair Trade
1. Subsidies
2. Dumping and Anti-dumping
Questions
References
Lecture 6. Trade in Services
1. Significance of Liberalization of Trade in Services
2. Main Purpose of the GATS
3. Frame of Commitments of GATS
4. Specific Commitments of GATS
5. General Obligations and Disciplines
6. The Annexes: Services Are Not All The Same
Questions
References
Lecture 7. TRIPS
1. Intellectual property rights - basic concepts
2. Trade related aspects of IPRs
3. Copyright and related rights
4. Industrial property
5. Enforcement of IPRs
Questions
Reference
Lecture 8. Rules and Procedures Governing the Settlement of Disputes (DSU)
1. WTO Dispute settlement system - main definitions
2. Dispute settlement system in the WTO - basic concepts
3. Procedures for dispute settlement process
4. Case study: the timetable in practice
Questions
References
Lecture 9. Regulation of Agricultural Trade
1. Background for the Agreement
2. Areas of Commitments under the Agreement on Agriculture
3. Market Access
4. Export Subsidies
Questions
Reference
Lecture 1. Introduction to the course "Regulation of International Trade within the framework of the WTO "
1. Reasons for imposing trade restriction - individual country perspective
Within the course of International Economics you have learnt that free trade maximizes world output and benefits all nations. In theory, international trade can result in full utilization of natural and social resources and increase the welfare of all nations in trade.
International trade is a bridge for a nation towards prosperity, advancement and civilization. Today, no civilized nation can isolate itself from the rest of the world. Processes of globalization and economic integration have made the world a global village, and international trade plays an irreplaceable role in this process. In this respect, the WTO constitutes international trade policy, including general trade policies, trade rules and regulations of individual nations. International trade policy examines the reasons for and effects of trade restrictions because nations usually impose some restrictions on the flow of goods, services, and factors across their borders.
Despite the theory of international trade explains free trade to be the paretto optima, practically all nations (except for some free trade harbors like Hong Kong, Panama) do impose some restrictions on the free flow of international trade. In order to explain this phenomenon, it is necessary to understand effects of trade restrictions on production, consumption, trade and welfare.
Trade restrictions include tariffs and non-tariff measures. The most important type of trade restriction has historically been the tariff. The WTO/GATT has predominantly been devoted to the tariff reduction negotiations. The only issue discussed in the first 6 rounds of negotiations of the GATT is how to reduce tariff rates.
A tariff is a tax or duty levied on the traded commodity as it crosses a national boundary. An import tariff is a duty on the imported commodity, while an export tariff is a duty on the exported commodity. Import tariffs are more important than export tariffs. Export tariffs are usually applied by developing countries on their traditional exports (such as Ghana on its cocoa and Brazil on its coffee) to get better prices and raise revenues. The main objectives of an import tariff are to protect domestic market or domestic infant industries such as auto industry in Uzbekistan against foreign competition and to raise revenues of the central government of a country.
Tariffs can be ad valorem, specific, or compound. The ad valorem tariff is expressed as a fixed percentage of the value of the traded commodity. The specific tariff is expressed as a fixed sum per physical unit of the traded commodity. A compound tariff is a combination of an ad valorem and a specific tariff.
Tariffs, though generally declined in industrial nations since World War II (with an average nominal tariff rate of 3.8%), are still rendering tremendous effects on production, consumption, trade and welfare in the nation imposing the tariff and on its trade partners. While tariffs are invariably rationalized in terms of national welfare (such as the protection of infant industry or national industries), in reality they are usually advocated by those special groups in the nation that stand to benefit from such restrictions.
In short, consumers pay a higher price for the commodity and producers receive a higher price as a result of t...
