Abstract:
While neomercantilist policy measures, in the form of both import protection and export subsidization, are still gathering momentum and are just entering their second decade with evidently high growth rates, the dynamic post-war growth of world trade itself has at least temporarily come to a halt: trade fell in volume in 1981 by just under 1% and, in 1982, by about 2%. A new round of multilateral trade negotiations is in prospect for 1985, during which further tariff reductions will be on the agenda, but the main item for discussion will be questions surrounding a reform of GATT which emerged from the Tokyo Round. The following article seeks to establish the true significance of the GATT principles today, investigates the causes of the erosion of discipline within GATT, and deals with important aspects of present efforts to introduce reforms.
