POLI 441 Lecture Notes - Lecture 9: Most Favoured Nation, World Trade Organization, North American Free Trade Agreement
26 May 2016
School
Department
Course
Professor
Document Summary
Week 9 lecture - the effects of the wto. Institution is created around rounds of negotiations between countries. Most favoured nation (mfn): non-discrimination by importers across different foreign export sources; you cannot favour one country and not another. This can lead to a public good situation, where the country negotiating on a given product is providing access for everyone to that product. Exceptions: ptas (nafta or tpp) are by definition going against mfn and gsp (a freebie of market access to developing countries without requiring market access in turn) National treatment: you need to treat foreign products the same way you treat your foreign producers. Once the price of entry into a national market has been paid, a good must be treated as a like-national product. There is huge law literature trying to define the word "like" The wto actually has very little power of its own, it"s mostly just a bunch of rules that people agreed on.
