Scribd
Upload
60 views10 pages

INB 372 Chapter - 7 Part 2

Uploaded by

Tahrim Fatima Wahhab 1831213630
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
60 views10 pages

INB 372 Chapter - 7 Part 2

Uploaded by

Tahrim Fatima Wahhab 1831213630
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 10

Chapter 7

Protecting jobs
US tariffs on foreign steel. Chinese currency manipulation and subsidies.

Protecting industries deemed important for national security


E.g. defense related industries (aerospace, semiconductor, advanced electronics), 5G deployment in the US

Retaliating to unfair foreign competition


US threat of imposing 100% tariffs on Chinese products due to copyright infringements

Protecting consumers from “dangerous” products


Ban on beef from USA by Japan and South Korea (2003)
Furthering the goals of foreign policy
Preferential trade terms to build strong relations
Trade policy to punish rogue states. Example: Cuba, Libya

Protecting human rights


US government trade sanctions against Myanmar due to its poor human
rights practices Former US Secretary of State Rex
Tillerson (L) and Myanmar's State
Counselor Aung San Suu
Source: www.rfa.org

3
The Infant Industry Argument
The infant industry argument suggests that an industry should be protected until it can develop, be

viable and compete internationally


Example: Brazilian Automobile Industry
Strategic Trade Policy
Strategic trade policy suggests that in cases where there may be important first mover

advantages, governments can help firms from their countries attain these advantages

Example: US government gave substantial R&D grant to Boeing in the 1950s and 1960s. Government of Great
Britain did the same for Airbus.
 Japanese government provided huge amount of subsidies for R&D to further develop the LCD technology

5
GATT & WTO
GATT: The General Agreement on Tariffs and Trade (GATT) was a
multilateral agreement regulating international trade. GATT was signed
by 23 nations in Geneva on October 30, 1947 and took effect on January
1, 1948. It lasted until the signature by 123 nations in Marrakesh on April
14, 1994 of the Uruguay Round Agreements, which established the
World Trade Organization (WTO) on January 1, 1995.
The World Trade Organization is responsible for policing the world
trading system, and making sure that members adhere to trade treaties.
7
8
Since its establishment, the WTO has emerged as an effective advocate and facilitator of future trade deals,
particularly in such areas as services

The current agenda of the WTO focuses on:


 Minimize the rise of anti-dumping policies

The WTO is encouraging members to strengthen the regulations governing the imposition of antidumping
duties
 Reduce the high level of protectionism in agriculture

The WTO is concerned with the high level of tariffs and subsidies in the agricultural sector of many
economies:
•The US charges 10.3%, Canada 21.2%, EU 15.9%, Japan 18.6% as tariffs on agricultural products
•Subsidies account for 21% of the cost of agricultural production in the US, 21% in Canada, 35% in the EU and
59% in Japan

9
 Stronger enforcement of intellectual property rights
 TRIPS (Trade-Related Aspects of Intellectual Property Rights) obliges WTO members to
grant and enforce patents lasting at least 20 years and copyrights lasting 50 years

 Lowering the high tariffs on non-agricultural goods and services in many nations
 The WTO would like to bring down tariff rates on nonagricultural goods and services, and
reduce the scope for the selective use of high tariff rates

10

You might also like