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Extra info for The WTO Primer: Tracing Trade's Visible Hand through Case Studies

Example text

In one area, though, it was clear. S. law that brought automatic countervailing duties (retaliatory tariffs) when foreign subsidies were claimed, the Tokyo agreement outlined strict rules for issuing them. Fundamentally, the rule said that “material injury” had to be proved before the duties could be imposed. Agriculture was the primary area of concern for the United States in its relations with the EC. The United States pushed hard for specific limitations on subsidies from the EC under its Common Agriculture Policy.

This MFN, or nondiscrimination obligation, applies to all facets of trade, including customs duties, charges of various types and kinds that are connected to importing and exporting, as well as any internal policies affecting the valuation of an import or export. 22 Tariff Reductions and Bindings Fundamentally, this principle concerns transparency in national trade policies. Countries undertake commitments to openly state their maximum import duties or other regulations or barriers on specified types of goods.

Congress. The mechanism for its legitimization for the United States was the Trade Agreements Act of 1934. This act, you will remember, allowed the president to unilaterally make agreements on the lowering of tariffs as long as they contained reciprocity for American goods. S. Senate could not muster the two-thirds vote to approve the ITO treaty, and since President Truman became increasingly involved with the war in Korea and 22 The WTO Primer / Buterbaugh and Fulton could not expend the energy needed to get the treaty passed, the treaty was quietly withdrawn in 1950.

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