10 Sep Agreement Wto
However, these advantages must be offset by a disadvantage: by excluding certain countries, these agreements can transfer the composition of trade from low-priced countries that are not parties to the agreement to high-cost countries. Horn, H, P Mavroidis and A Sapir (2010), “Beyond the WTO? Anatomy of EU and US preferential trade agreements”, The World Economy, 33 (11):1565-1588. The best possible outcome of trade negotiations is a multilateral agreement that includes all major trading countries. Then, free trade will be extended to allow many participants to get the most out of trade. After World War II, the United States helped create the General Agreement on Tariffs and Trade (GATT), which quickly became the world`s leading multilateral trade agreement. As a multilateral trade agreement, GATT obliges its signatories to extend most-favoured-nation status to other trading partners participating in the WTO. . . .