GATT Case Study

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Copy and paste your text here and click "Check Unique" to watch this article rewriter do it's thing. Have no text to check? Click "Select Samples".When the Tokyo Round in GATT finally concluded in 1979 after nearly six years of negotiations, the feeling among many exhausted negotiators was “never again”. In less than three years, though, the US raised the idea of a new round. Following its traditional role, the US was the driving force behind the round and sought liberalization of world agricultural trade (where the Tokyo Round and earlier GATT-rounds had failed) and multi- lateral rules for investment and trade in services. More- over, American multinational enterprises (MNEs), especially the pharmaceutical industry, were demanding stronger measures against the infringement of various intellectual property rights. The US administration also saw a new round as a way to counter protectionist pressures that were being fed by the large US trade deficit and mounting job losses. There were even plans in the US Congress to impose an import surcharge on all imports. The other big actors held conflicting views as to the desirability and necessity of starting a new multilateral trade round. The EU was not particularly interested in supporting new initiatives in the GATT. Its stance was primarily defensive because of its interests in agriculture. Japan hid behind the EU and hoped that nothing would happen. The other active developed contracting parties in the GATT Australia, Canada, Sweden and Switzerland leaned towards the US position. The developing countries were deeply split. A group of 10 hardliners, under the leadership of India and Brazil, fiercely opposed a new round, especially the inclusion of services, intellectual proper... ... middle of paper ... ...ard. The Café au Lait group also comprised most members of the 14 agriculture exporting developed and developing countries who, just before the meeting in Pun- ta Del Este, formed the Cairns Group at a meeting in Cairns, Australia, in August 1986. The formation of this group increased pressure for prioritizing the agricultural issue in the agenda for the new round. Before the ministerial meeting, the chairman for the ministerial received two comprehensive papers—one from India and Brazil and the other from the Café au Lait group.11 After a couple of days of acrimonious discussions, the Chairman decided to base the negotiations on the Café au Lait paper, which after only minor mostly editorial changes emerged as the Ministerial Declaration on the Uruguay Round. Without the efforts of the Café au Lait coalition, the meeting would likely have ended in failure.

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