Essay about The Shortcomings of the Current International Trade System

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The Shortcomings of the Current International Trade System The issue of trade has been a factor in the interrelations between nations since their conception. Throughout history there have been many different structures that encompass these trade relations. In essence, the state of trade between counties coincided with, and depended upon, their economies, social structure, willingness to trade, and their available resources (tradable products and services). Today's trade system is still formulated by these factors. However, there are many more concerns and actors which must be weighed. The current international trade system is, to say the least, much more complex. In its complexity, the trade system has also inherited a very…show more content…
However, because of confusion about the implications of free trade, the ITO never came to be. Most notably, the United States and Europe (mainly Britain) clashed in their concepts of free trade. The United States saw free trade as a great means of helping world prosperity and encouraging peace. Europe was however skeptical of this structural change while power was so unevenly shifted in favor of the United States. With the threat of the US slipping into another depression, which would also hurt Europe's economy, and presence of the Soviet Union's ideals lurking in the background, a determination on trade became essential. Finally, the GATT was established with the sole concern of reducing trade barriers. After several years of operation, the first of the South's voice would be heard as they began to complain of unfair tariffs that industrialized countries still had in place that were detrimental to the developing counties. It was reported by an investigative committee that, "barriers of all kinds in developed counties contributed significantly to the trade problems of developing countries." A major subject of the 1961 United Nations General Assembly was the large trade gap between developed and undeveloped worlds. The Group of 77 (G-77), made up of developing
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