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International Financial Management of Wto

In: Business and Management

Submitted By yulisa826
Words 560
Pages 3
The World Trade Organization (WTO) officially commenced on 1 January 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT). It is an organization that intends to supervise and liberalize international trade and to resolve trade disputes.

Based on these objectives of WTO and our papers, we will divide our presentation into three parts. First, I will talk about economic sanctions and its impact on trade, then Lisa is going to impact of trade liberalization in developing countries, and finally Jessie will present developing country use of the WTO dispute settlement system.
Economic sanctions was defined as economic pressures or punishments which are utilized by “sender countries” against the “target countries” And sanctions can be classified into three main types, which are “boycotts”, “embargoes” and “financial sanctions”, respectively.

Economic sanctions are often directly associated with retaliatory action resulting from the conclusion of a WTO dispute settlement process (which will discuss further by my partner Jessie later). One example is the withdrawal of trade concessions by the United States in retaliation against the European Union’s banana regime, which was found to be inconsistent with WTO’s rule of trade liberalization.

However, economic sanctions can also be adopted by countries under WTO provisions but which are unrelated to the WTO dispute settlement process. The legal basis of their justification under WTO rules is the protection of “national security”. The relevant legal text is Article XXI (21) of GATT.
Take embargoes as an example, the target country has to pay more for certain goods and the trade volume will decrease. In the meanwhile sender country may loss its businesses of market, trade and investment opportunities in the target country.

Because there is time lag between the moment…...

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