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Chapter 5

Institutions encouraging free trade

6.1 WTO

 Roles

– to ensure compliance of member countries with previous GATT
agreements

– to negotiate future trade liberalisation agreements

– to resolve trading disputes between nations.

 Opposed to the development of trading blocs and customs unions such as the
EU and NAFTA

6.2 The European Union

 free trade and free movement of labour exists between member states

 common external tariffs apply to imports from non-member states.

6.3 The Group of Eight (G8)

 Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the
United States (i.e. 65% of the world economy)

 The G8 summit has consistently dealt with:

– Macroeconomic management

– International trade

– Energy issues and climate change

– Development issues and relationships with developing countries

– Issues of international concern such as terrorism and organised crime.

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