International Trade Organization


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International Trade Organization

Prior to World War II, many countries employed "beggar thy neighbor" trade policies, raising tariffs and instituting non-tariff barriers that impeded imports in an attempt to reduce unemployment and increase domestic output. However, other countries retaliated by raising their own barriers against imports. This resulted in reducing export markets, which then only worsened the already poor economic conditions. The problems created by such policies led United States to propose that a new international trade organization be established to regulate trade policies and settle disputes between trading partners. Under the U.S. proposal, the International Trade Organization (ITO) was to be a specialized agency of the United Nations and was to have several broad functions: promoting the growth of trade by eliminating or reducing tariffs or other barriers to trade; regulating restrictive business practices hampering trade; regulating international commodity agreements; assisting economic development and reconstruction; and settling disputes among member nations regarding harmful trade policies. Negotiations to establish the ITO began in Geneva, Switzerland, in 1947, with a more complete charter being drafted later in Havana, Cuba. Opposition to the charter of the ITO soon emerged, especially in the U.S. Congress. Subsequently, President harry truman's administration withdrew its support for the ITO, and interest in the ITO faded. The void left by the collapse of the ITO has been filled by other institutions, like the General Agreement on Tariffs and Trade (GATT), the World Bank, and the United Nations Conference on Trade and Development (UNCTAD).

References in periodicals archive ?
1--Forming an international trade organization without discrimination
Though itself originally intended to be a provisional agreement paving the way for a more extensive system of regulation administered by the International Trade Organization (ITO), GATT put into place a system of international trade law based on two principles.
The General Agreement on Tariffs and Trade (GATT) is an ad hoc, provisional organization created in the late 1940s after the world trading nations failed to implement an International Trade Organization (Cooper, 1994; Kehoe, 1998).
government should support China's petition to join this international trade organization.
First, GATT was supposed to be governed by the International Trade Organization ("ITO"), a permanent trade body with the power to eliminate nontariff barriers to trade and to reduce worldwide tariffs.
1bn in the same month last year, according to figures from SEMI, the Semiconductor Equipment and Materials International trade organization.
He is co-author of Coffee: Exporters' Guide (published by the International Trade Organization for the producers) and has served on the GCA's board of directors seven times.
As originally contemplated, an International Trade Organization (ITO) would have completed the triumvirate of Bretton Woods institutions designed to facilitate the revival of international economic activity in the post-World War II era - the other two being the World Bank and the International Monetary Fund.
Lee Hogan Cass, regional director of the Fashion Group International trade organization in Los Angeles, isn't complaining, but she's concerned about the trend.
We advocated a new international trade organization in the GATT [General Agreement on Tariffs and Trade] talks.
If the GATT Uruguay Round collapses, there will be a desperate need to create a successor international trade organization.
4) Originally, the Agreement was part of a broader regime for international trade, an International Trade Organization (ITO) as part of the Bretton Woods institutions, to be established by the Havana Convention.

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