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PROTECTION OF TRADE: QUOTA AND VOLUNTARY EXPORT RESTRAINTS INTRODUCTION In scandalise of being members of the General stipulation on Tariffs and occupation (GATT)/ military personnel quite a little Organization (WTO), European nations convey always utilise a number of fortressist methods, trusting on tariffs and non-tariff barriers to apportion. Overview of GATT and WTO: * The General Agreement on Tariffs and Trade (GATT) was established in 1947. It was created as a provisional agreement to eliminate business deal discrimination curiously through the elimination of quantitative restrictions on trade (quotas), the reduction of tariffs and the elimination of trade discrimination. These were obtained through octonary multilateral negotiations that began in Geneva 1947. (Nichola 1998, p. 419). The most recent ones atomic number 18 the Doha eke out and Cancun Round. * The World Trade Organization (WTO) was setup on first January 1995. This body is in charg e of managing the new global trade rules and reflects a green desire to operate in an simple and more commit multilateral trading system for the emolument and welfare of every(prenominal) countries. (Piggott & Cook, 2006 p.79) 1. What is protectionism? Protectionism is defined as polity of protecting domestic help industries against foreign competition by mean of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors.

(Encyclopaedia Britannica) Types of protection: * Tariffs - import taxes. * Quotas - measurable limits on th e aim of imports allowed. * Voluntary! exporting Restraint Arrangements where two countries make an agreement to limit the mickle of their exports to one a nonher over an agree period of time. * exertion subsidies- subsidy from government to reduce cost. * Export subsidies - a fee to encourage domestic production by lowering their costs. 2. NON-TARIFF bulwark TO TRADE These are any barriers to trade that are not tariffs. They are: 3.1 QUOTAS Quotas are...If you want to get a large essay, erect it on our website: OrderCustomPaper.com

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