What Does Reciprocal Trade Agreement Meaning

Critics of non-reciprocal preferential agreements have traditionally argued that developing countries should abandon their dependence on unilateral trade preferences in favour of reciprocal agreements, as these imply a stronger, credible and lasting commitment (see, for example, [3]; [4] and [5]). This approach is also supported by those who believe that the young industry argument, often used to justify unilateral concessions, is a misleading argument. As you know, trade agreements in favour of developing countries have not been limited to unilateral trade preferences. On the one hand, a large number of developing countries are members of the GATT/WTO system, which is based on reciprocity and most-favoured-nation principles. On the other hand, developing countries have also made a conscious effort to forge mutual preferential trade agreements that involve only developing countries (so-called South-South agreements) or that involve both developing and developed countries (known as North-South agreements). The Common Market for Eastern and Southern Africa (COMESA), the Association of Southeast Asian Nations (ASEAN) and the Mercado Común del Sur (MERCOSUR) are examples of South-South agreements. In contrast, the North American Free Trade Agreement (NAFTA), the Canada-Chile agreement, and the Agreement between the European Union and Mexico are examples of North-South agreements. The RTAA was regularly renewed by Congress until it was replaced in 1962 by the Trade Expansion Act, which President John F. Kennedy sought to give him greater authority to negotiate reciprocal trade agreements with the European Common Market.

The Common Market was created in 1957 to remove all barriers to trade in six key Western European countries: France, West Germany, Italy, Belgium, the Netherlands and Luxembourg. Its economic strength, growing pressure on America`s balance of payments, and the threat of a communist aid and trade offensive prompted Congress to pass the Trade Expansion Act. or inter-zone, base for all products, in exchange for similar discounts by other countries. .