International Trade Principles, WTO, and Economic Integration

The Fourteen Points of Woodrow Wilson

• 1. Open diplomacy
• 2. Freedom of the seas
• 3. Removal of economic barriers
• 4. Reduction of armaments
• 5. Adjustment of colonial claims
• 6. Evacuation of Russian territory
• 7. Preservation of Belgian sovereignty
• 8. Restoration of French territory
• 9. Redrawing of Italian frontiers
• 10. Division of Austria-Hungary
• 11. Redrawing of Balkan boundaries
• 12. Limitations on Turkey
• 13. Establishment of an independent Poland
• 14. Creation of an Association of Nations

Importance to Trade

• Fostering global wealth
• Restoring peace in Europe and global balance
• Stimulating international trade

Neoliberalism and Economic Policy

• Privatization generates employment
• Reaction to the economic context of the 1960s and 1970s
• Public spending generates economic crises
• Seeks privatization of systems
• Elimination of state interventions in economic affairs
• End of the Cold War
• Public debt as an obstacle to wealth
• Keynesianism critiques of the welfare system

Challenges in International Trade

• International insecurity
• Smuggling
• Rising energy prices
• Exchange rate fluctuations
• Reduced investment in developing countries
• Lack of infrastructure
• Protectionism
• External debt

GATT and the WTO

GATT (General Agreement on Tariffs and Trade): Promotes free, fair, and equitable trade, as well as the development of underdeveloped countries. It aims to eliminate tariff and customs barriers between nations.

WTO (World Trade Organization): Established in 1994 following the Uruguay Round, integrating GATT. It currently has 194 members and 24 candidate countries, accounting for 95% of global trade.

WTO Functions

1. Manage trade agreements
2. Serve as an international forum for negotiations
3. Resolve business disputes
4. Analyze and review trade policies between states
5. Support developing countries
6. Cooperate with other international organizations

Principles of International Trade

1. Trade without discrimination
2. Open trade
3. Predictable trade
4. Competitive trade
5. Special treatment for developing countries

The International Monetary Fund (IMF)

Founded in 1945 at the Bretton Woods Conference, the IMF is one of the most significant financial organizations globally.

Objectives

• Combat poverty
• Increase international monetary cooperation
• Ensure financial stability
• Increase international exchanges
• Stabilize economies

Functions

• Ensure the stability of the international monetary system
• Manage economic and financial crises

Economic Integration

Economic integration is the process by which countries remove barriers to mutual benefit. It can be categorized as positive or negative.

Levels of Integration

1. Preferential trade zone
2. Free trade area
3. Customs union
4. Common market
5. Economic and monetary union
6. Complete economic integration