Term
| The General Agreement on Tariffs and Trade 1994 (GATT 1994) |
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Definition
| Multilateral treaty subscribed to by 126 member governments; consists of the original 1947 GATT, numerous multilateral agreements made since 1947, the Uruguay Round Agreements, and the agreement that established the WTO |
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Term
| What is the purpose of the GATT? |
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Definition
| To liberalize world trade and make it secure for furthering economic growth and human development |
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Term
| What are the two fundamental principles of the GATT? |
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Definition
1. Trade without discrimination
2. Domestic protection through tariffs |
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Term
| Most-favored-nation-clause |
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Definition
| Clause that states whereby any privilege subsequently granted to a third country in relation to a given treaty subject is extended to the other party to the treaty (means equal treatment--no country can give special trading advantages to another) |
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Term
| Dispute Settlement Body (DSB) |
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Definition
| Provided by the WTO to enable member countries to resolve trade disputes rather than engage in unilateral trade sanctions or a trade war |
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Term
| Special drawing rights (SDRs) |
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Definition
| A country can use SDRs to borrow money from the International Monetary Fund (IMF) or its members to permit that country to maintain the stability of its currency's relationship to other world currencies. |
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