By Jonathan Reuvid
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Extra resources for A Handbook of World Trade: A Strategic Guide to Trading Internationally
Her skills were known to be more on the bilateral than the multilateral side of trade negotiations. All in all, the Seattle Ministerial Conference was leaderless. Efforts at drafting a Ministerial Declaration and proposals of negotiating positions were sustained in Geneva, but again only reflected a growing divergence of views among WTO members. Developing countries demanded extensions of the transitional periods, a review, possibly renegotiation, of certain agreements, eg on anti-dumping, textiles, dispute settlement, and the elimination of export subsidies in agriculture.
Although the GATT was conceived as a stop-gap measure until the ITO became functional, its temporary status was made ‘permanent’ by the Provisional Protocol of Application. It entered into effect in January 1948, while the Havana Conference was still under way. Although it operated like an organization, legally the GATT never had that status. A renewed attempt in 1955 to turn it into a proper institution failed. The GATT’s permanent uncertainty, indistinct identity and awkward acronym went a long way towards protecting it from public scrutiny, and allowed it to carry out its mandate of reducing border restrictions quietly and effectively.
In the aftermath of two oil shocks, a worldwide recession was marked by double-digit interest, unemployment and inflation rates in the USA and elsewhere. At the same time, macroeconomic imbalances were evident in misalignments of exchange rates, while foreign investment continued to grow and economies became increasingly open, as shown by high trade to gross domestic product (GDP) ratios. Meanwhile, US farmers were on the brink of revolt, as high prices and farm support systems, especially under the European Community Common Agricultural Policy (CAP), had led to huge surplus production in grains and other farm produce.
A Handbook of World Trade: A Strategic Guide to Trading Internationally by Jonathan Reuvid