Uruguay Round

Definition

The Uruguay Round was a major series of negotiations under the General Agreement on Tariffs and Trade (GATT) that took place from 1986 to 1994, aimed at extending and improving global trade agreements. It resulted in significant changes to international trade policies, including the establishment of the World Trade Organization (WTO) and the reduction of tariffs and non-tariff barriers across multiple sectors. This round was crucial for promoting free trade agreements among member countries, leading to increased economic cooperation and globalization.

5 Must Know Facts For Your Next Test

1. The Uruguay Round negotiations lasted for eight years and involved 123 countries, making it one of the most comprehensive trade discussions in history.
2. One of the key achievements of the Uruguay Round was the agreement to phase out the Multifiber Arrangement, which imposed quotas on textile and apparel imports.
3. The round also introduced significant provisions on intellectual property rights through the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
4. Another important outcome was the commitment to enhance agricultural trade by reducing export subsidies and improving market access for agricultural products.
5. The creation of the WTO marked a shift from GATT's original framework, establishing a more structured organization to oversee global trade rules and resolve disputes.

Review Questions

• How did the Uruguay Round contribute to the establishment of the World Trade Organization?
  • The Uruguay Round played a pivotal role in establishing the World Trade Organization by expanding the scope of trade negotiations beyond just goods to include services and intellectual property. The agreement culminated in 1994 with the signing of the Marrakesh Agreement, which formally created the WTO. This new organization was designed to provide a more robust framework for international trade governance, addressing issues that GATT had not fully resolved, thus enhancing cooperation among member countries.
• Discuss the implications of the Uruguay Round's agreements on agricultural trade.
  • The agreements reached during the Uruguay Round significantly impacted agricultural trade by introducing measures to reduce export subsidies and enhance market access for agricultural products. This was a crucial step toward more equitable trade practices in agriculture, which had long been dominated by protectionist policies. By encouraging member countries to lower their trade barriers, these agreements aimed to create a fairer competitive environment, benefiting both exporting and importing nations while promoting food security globally.
• Evaluate how the outcomes of the Uruguay Round reflect broader trends in global economic integration.
  • The outcomes of the Uruguay Round exemplify broader trends in global economic integration by fostering a multilateral approach to trade that emphasizes cooperation over isolation. The establishment of rules governing not only tariffs but also services and intellectual property reflects an evolving understanding of global commerce in a rapidly changing economy. As countries became increasingly interdependent through these agreements, it facilitated deeper economic ties, reduced barriers to trade, and supported globalization, ultimately influencing national policies and domestic economies around the world.

Related terms

World Trade Organization (WTO): An international organization that emerged from the Uruguay Round negotiations, responsible for regulating and facilitating international trade agreements among its member countries.

General Agreement on Tariffs and Trade (GATT): An international treaty aimed at reducing tariffs and promoting international trade, which laid the groundwork for the negotiations that took place during the Uruguay Round.

Trade Liberalization: The process of reducing barriers to trade, such as tariffs and quotas, to allow for greater international exchange of goods and services.