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5. Difference between gatt and wto

(a) GATT was a provisional agreement by contracting parties with no legal enforcement power. WTO is a binding permanent agreement by members.

(b) GATT only included trade in goods. WTO additionally includes trade in services, international investments and intellectual property rights.

(c) GATT has no provisions to settle trade disputes. WTO sets up a dispute settlement body and disputes are quickly resolved.

Working on the text

Ex.1. SKIMMING:

a. Read the headline and the first sentence of each paragraph of the text.  Pair up to discuss the guessed-at topic of the article.

b. Read the first paragraph and the last paragraph of the text. Then work in pairs to discuss the guessed-at contents of the piece.

c. Read the text during two minutes. After two minutes, get into pairs to discuss the contents of the piece. 

Ex.2. SCANNING:

a. While scanning the text find the answers for content-specific questions given by the teacher.

b. While scanning the text read the sentences containing the key vocabulary words given by the teacher.

Ex.3. READING: Read and translate the text “General Agreement on Tariffs and Trade”.

Ex.4. CHAT: In pairs / groups, decide which of these topics from the article are most interesting and which are boring.

international institutions, to liberalize, to facilitate, to encourage, free flow of private capital, political complement, to replace, international conference, draft charter, commitments to regulate, tariff rates, provisions, provisional existence, contracting parties, to accord, non-discriminative, free trade, quantitative restrictions, to remove surplus, to safeguard, import quotas, to encourage, infant industries, patents, copyrights, Public Morals, ad valorem tariff, majority vote, adopted codes, provisional agreement, international investments, intellectual property rights, to settle trade disputes, dispute settlement body.

Have a chat about the topics you liked. Change topics and partners frequently.

Ex.5. GATT DISCUSSION: What is GATT? Talk about this with your partner(s). Rate each item from 10 (This is essential) to 1 (How ridiculous). Change partners and share your ideas. Use the words below.

_____ ad valorem tariff

_____ international institutions

_____ tariff rates

_____ to safeguard

_____ non-discriminative

_____ to facilitate

_____ tariff rates

_____  import quotas

Ex.6. WRITING ON GATT PROVISIONS: Spend one minute writing down all of the different words you associate with the word ‘provisions’. Share your words with your partner(s) and talk about them. Together, put the words into different categories.

Ex.7. QUICK DEBATE: Students A GATT in general prohibits the use of quantitative restrictions on imports and exports; Students B are strongly against this. Change partners again and talk about your roles and conversations.

Ex.8. TRUE / FALSE: What sentences are true (T) or false (F):

a.

As a result of these negotiations, after World War II the US and its Allies planned to establish four important international institutions to liberalize trade and payment.

T / F

b.

WTO is a binding permanent agreement by members.

T / F

c.

GATT only included trade in goods.

T / F

d.

GATT has enjoyed a membership of over 1000 countries and generated about 85-90% of world trade.

T / F

e.

GATT was the result of an international conference held at Moscow in 1949 to consider a draft charter for the International Trade Organization (ITO).

T / F

f.

GATT had a lot of provisions to settle trade disputes.

T / F

g.

WTO sets up a dispute settlement body and disputes are quickly resolved.

T / F

h.

International Monetary Fund (IMF) was established to facilitate international payments

T / F

Ex.9. SYNONYM MATCH: Match the following synonyms from the article:

1.

to safeguard

a.

to agree

2

to accord

b.

clauses

3.

restrictions

c.

lack

4.

provisions

d.

allowance

5.

surplus

e.

settle

6.

quota

f.

to give the right

7.

to settle

g.

to cut out

8.

to resolve

h.

to regulate

9.

to entitle

i.

limitations

10.

to eliminate

j.

to defend

Ex.10. PHRASE MATCH: Match the following phrases from the article (sometimes more than one combination is possible):

1.

Toward the end of World War II, representatives of the US and its Allied Forces …

a.

patents, copyrights, Public Morals

2

GATT was the result of an international conference held at Geneva in …

b.

LDCs may use import quotas to encourage infant industries.

3.

GATT was a provisional agreement …

c.

concealed protection such as customs valuation.

4.

National Security- Strategic controls on certain exports …

d.

body and disputes are quickly resolved.

5.

GATT in general prohibits …

e.

that led to commitments to regulate 45,000 tariff rates.

6.

WTO sets up a dispute settlement body …

f.

binding permanent agreement by members.

7.

Provisions to eliminate …

g.

use of quantitative restrictions on imports and exports.

8.

WTO is …

h.

by contracting parties with no legal enforcement power.

9.

Developing countries - …

i.

1947 to consider a draft charter for the International Trade Organization (ITO).

10.

The US initiated negotiations with 22 other countries …

j.

endeavored to work out the arrangements for a new world order in the post war era.

Ex.11.GAP FILL: Put the words into the gaps in the text.

Toward the end of World War II, representatives of the US and its Allied Forces endeavored to work out the arrangements for a new ___ ___ in the post war era. As a result of these negotiations, after World War II the US and its Allies planned __ _____ three important international institutions __ _____ trade and payment.

1.Three institutions + UN

I. International _____ ___ (IMF) was established to facilitate international payments.

II. International Bank for _____ and Development. To encourage free ____ of private capital, International Bank for Reconstruction and Development (IBRD, now the World Bank) was also established.

III. To _____ free trade, International Trade Organization (ITO) was to be born.

IV. As a political ___ to these institutions, United Nations was also established in 1945 _____ the League of Nations.

GATT was the result of an international _____ held at Geneva in 1947 to consider a _____ _____ for the International Trade Organization (ITO). The US initiated negotiations with 22 other countries that led to ____ to regulate 45,000 tariff rates.

Technically, GATT was viewed as an agreement under the ____ of US Reciprocal Trade Act of 1934, and hence did not require approval of Congress. So GATT began its provisional existence on January 1, 1948, when 23 ___ parties signed the agreement.

2. Major Provisions of GATT

1. Tariff

(a) GATT obligates each country to accord non-discriminative, most favored nation (MFN) treatment to all other contracting parties with respect to tariffs.

(b) MFN treatment does not mean free trade or national treatment. Imports from contracting parties are subject to ___ or quotas. MFN treatment means that no other countries with some _____ receive better treatment or lower tariffs.

 2. Quantitative Restrictions

GATT in general prohibits the use of _____ restrictions on imports and exports.

Exceptions

(a) Agriculture - when government needs to ____ surplus of agricultural and fisheries products.

(b) Balance of payments - to safeguard ___ of payments. If a country's foreign exchange _____ is low.

(c) Developing countries - LDCs may use import _____ to encourage infant industries.

(d) National Security- Strategic controls on certain exports, patents, _____ , Public Morals.

3. Other provisions

Provisions to _____ concealed protection such as customs valuation. For example, American Selling Price _____ . By ASP, an __ _____ tariff is imposed on the domestic price. Procedural matters: each member is entitled to one vote, decisions are made by _____ vote. 2/3 majority is required to waive obligations. Settlements of disputes.

4. Achievements and Problems of GATT/WTO

GATT has enjoyed a _____ of over 100 countries and generated about 85-90% of world trade.

(a) Trade _____ in industrial products (Kennedy Round)

(b) Adopted codes on NTBs (Tokyo Round)

(c) No world wars since 1948 (Increased trade promotes world peace)

(d) Replaced by WTO on January 1, 1995.

5. Difference between GATT and WTO

(a) GATT was a provisional agreement by contracting parties with no legal _____ power. WTO is a _____ permanent agreement by members.

(b) GATT only included trade in goods. WTO additionally includes trade in services, international _____ and intellectual property rights.

(c) GATT has no provisions to settle trade _____ . WTO sets up a dispute settlement _____ and disputes are quickly resolved.

contracting

draft charter

facilitate

flow

Reconstruction

Monetary Fund

to liberalize

body

world order

to establish

complement

to replace

conference

commitments

provisions

tariffs

exceptions

disputes

quantitative

remove

balance

reserve

quotas

copyrights

eliminate

valuation

binding

ad valorem

majority

investments

membership

liberalization

enforcement

Ex.12. WORD SEARCH: Look in your dictionaries / computer to find collocates, other meanings, information, synonyms … for the words ‘liberalization and valuation.

liberalization

valuation

  • Share your findings with your partners.

  • Make questions using the words you found.

  • Ask your partner / group your questions.

Ex.13. TEXT QUESTIONS: Look back at the text and write down some

questions you would like to ask the class about the text.

  • Share your questions with other classmates / groups.

  • Ask your partner / group your questions.

Ex.14. VOCABULARY: Circle any words you do not understand. In groups, pool unknown words and use dictionaries to find their meanings.

Ex.15. TEST EACH OTHER: Look at the words below. With your partner, try to recall how they were used in the text:

draft charter

facilitate

flow

to liberalize

body

world order

to establish

complement

to replace

conference

commitments

provisions

tariffs

exceptions

disputes

quantitative

remove

balance

reserve

quotas