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History Of Multilateral Trade Agreements

The Free Trade Agreement between Central America and the Dominican Republic was signed on 5 August 2004. CAFTA-DR has removed tariffs on more than 80 percent of U.S. exports to six countries: Costa Rica, the Dominican Republic, Guatemala, Honduras, Nicaragua, and El Salvador. By November 2019, trade had increased by 104%, from $2.44 billion in January 2005 to $4.97 billion. and thus provide a basis for the expansion of multilateral trade, in the period that followed, there were increasing waves of more regional trade agreements. In less than five years after the creation of GATT, Europe would begin, with the creation of the European Coal and Steel Community in 1951, a programme of regional economic integration that would eventually become what we know today as the European Union (EU). The entire doctrine of mercantilism would be attacked by the writings of Adam Smith and David Ricardo, both of whom stressed the desire to import and stated that exports are only the costs necessary for their acquisition. Their theories gained influence and helped create a trend towards more liberal trade – a trend that Britain had to put forward. The rise of nationalist ideologies and gloomy economic conditions after the war served to disrupt world trade and dismantle the trade networks that had marked the previous century. The new wave of protectionist trade barriers prompted the newly created League of Nations to convene the First World Economic Conference in 1927 to conclude a multilateral trade agreement.

However, the agreement would have little effect, as the onset of the Great Depression marked a new wave of protectionism. The economic insecurity and extreme nationalism of that time created the conditions for the outbreak of the Second World War. The creation of the WTO on 1 January 1995 marked the largest reform of international trade since the end of the Second World War. While gatt was mainly concerned with trade in goods, the WTO and its agreements also concern trade in services and intellectual property. .

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