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1、INTERNATIONALAGREEMENTS:TRADE,LABOR,ANDTHEENVIRONMENT1InternationalTradeAgreements2InternationalAgreementsonLaborIssues3InternationalAgreementsontheEnvironment4Conclusions11Introduction1999WTOtradenegotiationsinSeattle,WAwerethefirsttobeheavilyprotested,withpro
2、testssometimesturningviolent.Pasttradenegotiationshadfocusedonloweringtariffsinmostsectorsofmembers’economies.Remainingbarrierstotrade,however,dealtwithregulatorybarriers,suchasenvironmentalregulations.TheUruguayRound(1986–1994)allowedforcountriestobringdispute
3、siftheyfelttheywereexcludedfromamarketduetounreasonableenvironmentalstandards.2IntroductionThesenewrulesinfuriatedmanygroupswhothoughttheWTOmightthreatentheirenvironmentalinterests.Additionally,manyfeltitundesirableforapanelinGenevatomakerulingsaffectingdomesti
4、cregulations.AllthesegroupsgatheredinSeattletovoicetheirdissatisfactionwiththeWTO.Thegoalofthischapteristoexaminewhyinternationalagreementsareneeded,andhowtheseagreementsaffectlaborandenvironmentalissues.3InternationalTradeAgreementsCountrieswilloftenenterintoa
5、tradeagreementtoreducetradebarriersbetweenthemselves.TheWTOisamultilateraltradeagreement,involvingmanycountries,allwiththegoalofreducingtariffsbetweenmembercountries.WTOhasnegotiatedmanytradeagreements.Underthemostfavorednationprinciple,thelowertariffsagreedtoi
6、nthesenegotiationsmustbeextendedequallytoallWTOmembers.Newmembersgetthesebenefits,butmustalsoagreetolowertheirowntariffs.Todemonstrateamultilateraltradeagreement,wewillassumethereareonlytwocountries.4InternationalTradeAgreementsTheLogicofMultilateralTradeAgreem
7、entsTariffsforalargeCountryFigure11.1showstheeffectsofatariffonalargecountry(Home).WefoundbeforethatatariffleadstoadeadweightlossforHome:(b+d).Wealsosawaterms-of-tradegainforHome,e,whichequalsthereductioninForeignpriceduetothetarifftimestheHomeimportswiththetar
8、iff.IfHomeappliedtheoptimaltariff,thentheterms-of-tradegainexceedsDWL,andHomegainsoverall.ForForeign,aDWL,f,existsfrominefficientproductionlevels.TheHomegaincomesattheexpens
