Uruguay Round

File:History-Images-1994-WTO.jpg

The Uruguay Round was the 8th round of multilateral trade negotiations conducted within the framework of the General Agreement on Tariffs and Trade (GATT), spanning from 1986 to 1994. It was the most comprehensive and ambitious round of trade negotiations, aiming to extend the trading system into several new areas, notably trade in services and intellectual property, and to reform trade in the sensitive sectors of agriculture and textiles.

Background

The Uruguay Round was launched in September 1986, in Punta del Este, Uruguay, hence its name. The negotiations were driven by the need to address the limitations of the previous Tokyo Round and to adapt the global trading system to the changing economic landscape.

Objectives

The primary objectives of the Uruguay Round were to:

• Reduce tariffs and other trade barriers.
• Expand the scope of the GATT to include services and intellectual property.
• Reform trade in agriculture and textiles.
• Strengthen the dispute resolution mechanism.

Key Agreements

The Uruguay Round concluded with the signing of the Marrakesh Agreement in April 1994, which established the World Trade Organization (WTO). Key agreements reached during the Uruguay Round include:

• The Agreement on Agriculture: Aimed at reforming trade in the agricultural sector by reducing subsidies and trade barriers.
• The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Set minimum standards for the protection of intellectual property.
• The General Agreement on Trade in Services (GATS): Extended the multilateral trading system to the service sector.
• The Agreement on Textiles and Clothing (ATC): Phased out the Multi-Fibre Arrangement (MFA) and integrated the textile sector into GATT rules.

Impact

The Uruguay Round had a significant impact on the global trading system. It led to the creation of the WTO, which provided a more robust framework for international trade and a stronger dispute resolution mechanism. The agreements reached during the Uruguay Round also contributed to the liberalization of trade in goods and services, promoting economic growth and development.

Criticisms

Despite its successes, the Uruguay Round faced criticism from various quarters. Developing countries argued that the agreements disproportionately favored developed nations and that the implementation of the agreements imposed significant costs on them. There were also concerns about the impact of trade liberalization on labor standards and the environment.

See Also

• General Agreement on Tariffs and Trade
• World Trade Organization
• Tokyo Round
• Doha Development Round
• Marrakesh Agreement