Which Agreement Laid The Groundwork For The Formation Of The World Trade Organization
6. Based on the think tanks of O`Driscoll et al., 2001 Index of Economic Freedom, and information on World Bank GDP, Global Development Indicators on CD-ROM 2000 and Economist Intelligence Unit Limited, EIU Country Reports, London, 1999-2000. It`s time to start the Global Free Trade Association and help more people thrive. The AIG promises to promote global economic growth and economic freedom by securing the benefits of free trade for Member States, while encouraging third countries to undertake market-friendly reforms to qualify for membership. Table 1 lists the 26 countries that challenge only one factor of gfTA membership. If these countries were to remove the eligibility barrier in the table, they would also be eligible for the GSA in order to gain better access to the markets of the United States and the other ten countries. Such a “carrot” would do much more than diplomatic “sticks” to advance free trade. 4. According to the methodology of the index, countries must achieve a score of 1 or 2 in terms of trade policy, foreign capital flows and investment, property rights and regulation to qualify for the AGAP. The index ranks countries on a scale of 1 to 5 (1 is the highest score). The success of the AACG for the first 11 members would encourage other countries to undertake reforms to join us. In the absence of a U.S.
demonstration of the benefits of liberalization, they would be encouraged to open up their markets more to qualify for the AGFTA. Reform would be in their best interest. A system based on gratifying markets that have already opened up will change the way countries think about trade. Open economies no longer have to argue over concessions made by closed countries for the pursuit of free trade. Instead, free trade will be seen as what it is – a policy that gives a considerable economic advantage to the countries that adopt it. Countries that qualify CETA`s advantage over current free trade mechanisms is that qualified countries would provide the benefits of stronger trade and investment among members without having to undertake significant new policy reforms. In other words, membership is based on current policies and not on future promises. Rather than seen as a substitute for other mechanisms that encourage free trade, such as the WTO or bilateral trade agreements, the MPA should be seen as the basis for a larger trade agenda – to promote free trade by all means. It is a creative alternative to current approaches, more suited to an era where the advance of global free trade has stalled. The resumption of U.S. leaders on free trade is now a priority.
President George W. Bush has already indicated that he will ask Congress to give him the power to quickly conclude trade agreements, and U.S. Trade Representative Robert Zoellick has made it clear that the Bush administration will encourage “global, regional and bilateral free trade” and that his policy is to “reward good results.” 2 CONCLUSION Trade promotes economic growth in countries where government structures are very different, in part because they promote competition and innovation. These, in turn, offer consumers more choices and better opportunities to improve their standard of living. This encourages companies to develop better products and market more of these goods and services, which helps keep prices low and quality. The winners are the people themselves. In this period of globalization, trade issues have mixed foreign and economic policy like never before. The Bush administration must develop a new free trade program that brings together the world`s open economies and demonstrates the immense benefits that economic freedom brings to its citizens.