Unit 2 - Economics
WTO – World Trade Organization (1994)
GATT - General Agreement on Tariffs and
Trade
 Each agreement was called a round.
 Organization for liberalizing trade.
 Negotiating Forum.
 Set of Rules.
 Helps settle disputes.
 192 countries
GATT - General Agreement on Tariffs and
Trade
 The outcome of each round
 Each agreement bound members to reduced tariffs
 Economic benefits
 Increased the trade for countries
 Economic set-back
 Trade in services and "intellectual property" such as
computer software has grown much more rapidly than
traditional merchandise exports, and has made rules
designed for trade in manufactured goods obsolete.
WTO
 The last and largest GATT round, was the Uruguay
Round which lasted from 1986 to 1994
 Led to the WTO’s creation.
 Whereas GATT had mainly dealt with trade in goods,
the WTO and its agreements now cover trade in
services, and in traded inventions, creations and
designs (intellectual property).
GATT’s Three Basic Principles
 Nations are to limit imports only through
tariffs and not through quotas or other nontariff barriers.
 Multilaterally negotiated tariff reductions .
 Signatory countries agree not to
discriminate between member states .
NAFTA - North American Free Trade
Agreement
 Participating Nations
 United States
 Mexico
 Canada
NAFTA Agreement
Eliminates almost all U.S.-Mexico
tariffs
Mexico-Canada tariffs are also
phased out.
Eliminates other barriers to trade
such as import licensing
requirements and Customs user
fees.
NAFTA - North American Free Trade
Agreement
 Economic benefit
 Created the world’s largest free trade area.
 Eliminate barriers to trade and facilitate the cross-border
movement of goods and services.
 Promotes conditions of fair competition.
 Increases investment opportunities.
 Economic Set-back
 Negative impacts on farmers in Mexico who saw food prices fall
based on cheap imports from U.S.
 Negative impacts on U.S. workers in manufacturing and assembly
industries who lost jobs.
 More than a million Mexican farmers and their families have had to
abandon their land and livelihood because they are unable to
compete with subsidized food crops from the United States.
CAFTA - Central American Free Trade
Agreement
 Originally, the agreement encompassed the United
States and the Central American countries of Costa
Rica, El Salvador, Guatemala, Honduras, and
Nicaragua, and was called CAFTA.
 In 2004, the Dominican Republic joined the
negotiations, and the agreement was renamed DRCAFTA.
CAFTA - Central American Free Trade
Agreement
 The agreement would eliminate almost all trade
barriers between the United States, Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua and also
the Dominican Republic.
CAFTA - Central American Free Trade
Agreement
 Allows slightly higher sugar shipments to the USA, above
the annual U.S. sugar import quota, which is designed to
prop up domestic prices.
 As negotiated, will harm, rather than help, farmers and
workers in Central America who are struggling to
overcome poverty.
 Estimated that there would be a net loss of fiscal revenue
due to the CAFTA in all countries.
NATO –
North Atlantic Treaty Organization
 Military Alliance established by the signing of the
North Atlantic Treaty on April 4, 1949.
 System of Collective Defense – member states agree to
mutual defense in response of attack by any external
party.
 Belgium, Netherlands, Luxembourg, France, United
Kingdom, United States, Canada, Portugal, Italy,
Norway, Denmark, Iceland, Greece, Turkey
 Standardization of allied military terminology,
procedures and technology (mostly American).
NATO WEBSITE
OPEC – Organization of Oil
Petroleum Exporting Countries
 Cartel
 Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, United Arab Emirates, Venezuela
 In accordance with its Statute, the mission of the
Organization of the Petroleum Exporting Countries
(OPEC) is to:
 Coordinate and unify the petroleum policies of its Member
Countries
 Ensure the stabilization of oil markets in order to secure an
efficient, economic and regular supply of petroleum to
consumers, a steady income to producers and a fair return on
capital for those investing in the petroleum industry.
UN – United Nations
 International organization founded in 1945 after WWII.
 192 Member States
 Facilitate cooperation in:
 International law
 International Security
 Economic Development
 Social Progress
 Human Rights
 World Peace
 CYBER SCHOOL BUS
UN - United Nations
 WHO – World Health Organization
 UNICEF – United Nations Children’s Fund
 6 Official Languages
 5 decision making bodies
 General Assembly – Main Decision-making body
 Security Council – Maintain peace and security
 International Court of Justice- WEBSITE
 Economic and Social Council -WEBSITE
 Secretariat – Provides studies and information