As already stated, the first article of the GATT set out the requirement for treatment of the most first reservation, under which discrimination was permitted in only two circumstances. One such case has been the creation of unions and free trade areas (Gatt Article XXIV). In a customs union, the participating countries remove all barriers to trade among themselves and adopt a common external customs duty. In a free trade area (i.e. a free trade agreement), all internal barriers to trade are removed, but each member state retains its own external customs duty applicable to non-members of the agreement. Unlike those sectors where formulas have been liberalized, footwear, textiles and clothing have been excluded from the Tokyo Round formula reductions. These sectors employ a relatively large number of unskilled workers, and U.S. firms generally find it difficult to compete with firms in low-wage countries in these sectors. In addition, these sectors have great political influence in a number of countries and, at that time, they could have blocked the approval of an agreement that they strongly opposed. As a result, not only were these sectors largely excluded from trade liberalization, but in 1974 some industrialized countries – including the United States, EU Member States, Canada and Norway – imposed the Multifibre Agreement, which limited the amount of textiles and clothing that could be imported. The EU and its 28 members, 15 other countries and the United States are all signatories to the Public Procurement Code (April 2016). [7] In addition, 30 WTO members and four international organizations have observer status in the Code.

Each of the signatories has submitted a list of government authorities that will take into account the bids of companies of other code signatories on an equal footing with the national bidders. ==The federal government has notified a broad list of companies under the code, and thirty-seven states have committed to opening markets to companies of other code signatories on publicly traded companies. Other countries, such as EU Member States and Japan, have made commitments comparable to those of the United States. The following video provides a good overview of the IMF and its role in promoting global trade. Answer the following questions to see how well you understand the above topics. This short quiz is not part of your grade in the class, and you can repeat it indefinitely…