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Вы можете ознакомиться и скачать презентацию на тему Free Trade vs Fair Trade. Доклад-сообщение содержит 15 слайдов. Презентации для любого класса можно скачать бесплатно. Если материал и наш сайт презентаций Mypresentation Вам понравились – поделитесь им с друзьями с помощью социальных кнопок и добавьте в закладки в своем браузере.

Слайды и текст этой презентации

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Free Trade vs Fair Trade Winners and Losers

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Why trade? Specialization and economies of scale in production lead to greater quantity of production in all trading countries and thus increased incomes and higher standard of living (economic welfare) International trade and international economic interdependence may reduce tensions and promote peace among nations of the world

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NAFTA Free trade Elimination of tariff, gradual in some cases Exceptions Free capital movements/investment ==================== Rationales Stability Economic prosperities for all parties Will reduce illegal immigration

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Concerns Economic Disparities Environmental concerns Labor concerns Inequalities

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Why free trade may not be fair: Limited potentials for trade in the developing world Winners and losers in both developed and developing countries The mismatches Tastes Regulations Standards Cultures Economic and social institutions Etc.

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Has NAFTA been successful? Economic growth Income inequality and poverty reduction Economic stability Immigration Has NAFTA resulted in real “free trade?” Some non-tariff barriers have survived The corn and tomato story The maquiladoras The emergence of China

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Perils of Free Trade Transitional job losses (unemployment) Lower incomes for some Loss of tariff income for some countries Infant industries at risk: A need for protection Imperfect capital markets (Note: Some criticize protection of infant industries.) Level playing field? From developed countries perspective From developing countries perspective Dumping laws There may be more losers and winners despite economic growth in some countries

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Where are we now? From GATT rounds (ending with the Uruguay Round) to WTO 1994 The rule of law in international trade Still the powerful have more clout Trade liberalization has favored the rich Still developing countries pay more tariffs than industrial rich Patent laws Capital liberalization vs labor liberalization Politics and the influence of special interests The development rounds: From Doha (2001) to Cancun (2003) and Hong Kong (2005): not much accomplished

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What to do? Treating developing countries differently Developed countries should do something about their agriculture subsidies Remove escalating tariffs from processed agricultural goods Liberalize unskilled-labor-intensive services Liberalize labor migration Reduction of non-tariff barriers Safeguards and dumping duties

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Fair Trade for Developing Countries The “most favored nation” principle should not be used as a bargaining tool by developed countries Extended market access; the European example Give them a break on subsidies Let them protect their new promising industries

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Agriculture The industrial world should stop or significantly reduce its agricultural subsidies, especially on those crops in which the developing countries may have a comparative advantage—e.g. cotton Concentration of subsidies in the US Fair market prices are would help efficient producers while the impact of slightly higher prices on consumers will be minimal

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Tariff Policies Do not punish developing countries for attempting to increase the value added of there exports by processing them: escalating tariffs; e.g., oranges vs. orange juice The effective protection of processing could be much greater than the nominal tariff rate on a processed product Do not abuse “safeguards” and “dumping” duties; there is need for an international tribunal to rule on trade violations

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Non-Tariff Barriers Technical barriers: safety, standards, etc. Rules of origin Tendencies toward bilateral trade agreements; such agreements should be restricted: It may be in the interest of large (powerful) countries to try to enter into trade agreement with individual countries – e.g., Chile Morocco, Peru

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Unskilled Labor and Immigration Developed countries should open up their markets to low-skilled services of developing countries: trucking, shipping, etc. The rich countries’ capital chases the cheap labor in developing countries. Why not liberalize the movement of low-skilled labor as well so that such labor can go the countries where the is a shortage of such labor

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Institutional Reforms Who makes the rules of international trade? Who sets the agenda? Who enforces the rules and how? How are disagreements are resolved? Transparency and openness in processes Enforcement mechanisms are not effective when used by developing countries; solution: trading “enforcement rights”