Danica Popovic

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• Danica Popovic
• Faculty of Economics and
• Center for Liberal-Democratic Studies
• WTO four principles, not just one
• Lepenski vir, 14-16 april 2005.

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Developments in Serbian foreign trade, 1965-2004.
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Pathological developments in trade shares,
1989-2004
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Low exports, but low import shares also
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Public opinion on liberalization

• The hostile and excessive liberalization
• Largest liberalization in the region
• EU and WTO are too far away

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Solution

• Export-led growth
• FDIs
• Fascilitating exports?
• Changes in exchange-rate policy?
• Creating competitive environment?
• The Government potentials
• Influence of lobbying groups
• Domestic
• New lobbying groups FDIs
• EU and WTO

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The need for WTO principles

• 4 principles, not just one
• Freer trade, tarification and reducing tariffs
• Non-discrimination, MFN
• exemptions
• Free Trade Agreements (FTA)
• Generalized System of Preferences
• Barriers against products which are unfairly
  traded
• Transparency and predictable policies
• Encouraging competition

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Coordination and preparation

• To identify the authorities or institutions
  within a country that will oversee application
  and ensure compliance with WTO rules and
  requirements
• Policies that violate WTO principles have to be
  identified and repealed.
• This set of principles, are not just rules but a
  way of thinking that must adopted and implemented
  by governments in all areas of activity
  (economic, regulatory, etc.).
• If foreign trade is the only area being
  subjected to this set of principlestrade
  liberalization will not have the effect that WTO
  Member countries anticipated That is the main
  reason why trade liberalization of some countries
  accomplished through WTO accession did not result
  in those results predicted by conventional
  economic wisdom.

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Kada je ko uao u WTO...
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Creating a new public opinion10 common
misunderstandings about the WTO

• 1. WTO dictates?2. Blindly for trade?3.
  Neglects developoment?4. Anti-green?5.
  Anti-health?6. Wrecks jobs?
• 7. Small left out?8. Tool of lobbies?9. Weak
  forced to join?10. Undemocratic?