Issues 30, 1947, and the GATT officially took effect

Issues
Motivated For Choosing This Topic

General Agreement on Tariffs and Trade (GATT) was a legal
agreement between many
countries, whose overall purpose was to promote international trade by
decreasing or eliminating trade barriers such as tariffs or quotas.

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GATT was signed by 23 nations in Geneva on October 30, 1947, and the
GATT officially took effect on January 1, 1948. It remained in effect till the
time it was signed by 123 nations in Marrakesh on April 14, 1994, of the
Uruguay Round Agreements, which established the World Trade Organization (WTO) on January 1, 1995. The WTO was the
successor of GATT, and the original GATT text (GATT 1947) is still in effect
under the WTO framework, subject to the modifications of GATT 1994.

The Norwegian economy is a developed mixed
economy with state-ownership
in strategic areas. Although it is sensitive to global business
cycles, the economy of
Norway has shown a solid growth since the start of the industrial era. The country has a very high standard of living as compared with other European countries,
and a strongly integrated welfare
system.

NORWAY IMPLEMENTS TRADE REFORMS AND STRENGTHENS
ITS COMMITMENT TO THE MULTILATERAL TRADING SYSTEM

Norway has been a member of GATT since 10 July, 1948 and also a member
of WTO  since 01st January,
1995. Instigated both by its membership in the European Economic Area (EEA) and
by its implementation of the Uruguay Round results, Norway has taken steps to
liberalize its economy, resulting in a better and stronger trade regime.

According to a new WTO report on Norway’s trade policies and practices,
the Norwegian economy now shows signs of continued growth, falling inflation
and lower unemployment.

Questions :-

1.      Reasons for the continuous growth and other
variables.

 

2.      What were the steps taken by the Norwegian
Government.

 

Origin and Nature

The origin of GATT was inspired
by the success of agreement for international monetary co-operation as
reflected in the formation of the IMF, similar co-operation as reflected in
international trade also was desired by many trading nations for expansion of
world trade.

During the International Conference on Trade and Employment
held in 1946 at Havana, there was a proposal for establishing an agency called
the International Trade Organisation
(ITO) was made with the miscellaneous
and general objective for
employement and maintaining world trade .

Some countries took up one of the most
important issues of Havana Charter regarding the relaxation of Trade
Restrictions by forming GATT. It was
signed in 1947 by 23 major trading countries. GATT has more than 64 memebers
now.

Under GATT the member nations meet at
regular intervals to discuss and negotiate agreement to reduce the quota,
tariffs and other related restrictions in International Trade. Basically it is
a treaty that is collectively administered by the member nations.

GATT has now changed into World Trade
Organization. The WTO took place on 01st January, 1995. The WTO still
works on the guidelines given in GATT 1994. Now it has become a permanent
international operations to secure the conduct of International Trade.

 

 

 

 

 

 

 

 

 

Literature Review

Developing countries in the ITO and GATT negotiations

Citation
:- James
Scott, (2010)
“Developing countries in the ITO and GATT negotiations”, Journal
of International Trade Law and Policy, Vol. 9 Issue: 1, pp.5-24

Abstract :- The literature examining the
participation of developing countries in the General Agreement on Tariffs and
Trade (GATT) and International Trade Organisation (ITO) negotiations generally
sees their attitudes towards these projects as having been driven exclusively
by a commitment to import substitution. This commitment, it is argued, led
developing countries to oppose many aspects of the GATT/ITO project,
particularly the requirement for reciprocal tariff cuts. The purpose of this
paper is to focus on examining the critical period around the ultimately doomed
negotiation of the Charter for an ITO and the process of creating the GATT.

Design/Methodology/Approach
:-
This paper draws from GATT documents and from the literature on economic
history to give a more comprehensive account of the motivating ideas
underpinning developing countries attitudes to the post?war negotiations.

Norwegian
Dairy Industry: A Case of Super-Regulated Co-Operativism

Citation
:-  Reidar Almås, , Jostein
Brobakk, (2012), Norwegian Dairy Industry: A Case
of Super-Regulated Co-Operativism, in Reidar Almås, Hugh Campbell (ed.) Rethinking
Agricultural Policy Regimes: Food Security, Climate Change and the Future
Resilience of Global Agriculture (Research in Rural Sociology and Development,
Volume 18) Emerald Group Publishing Limited, pp.169 – 189

Abstract
:- Dairy
has been the backbone of agriculture in regional Norway, and the processing of
milk has been dominated by co-operatives owned by milk farmers. During the
social democratic order (1945–1979), productivist agriculture thrived, while a
more multifunctional agriculture was developed after 1980. As a measure against
overproduction, a quota system was introduced in 1983. The purpose of this
study is to see if there are signs of a neo-productivism revival after climate
change and other global shocks, like the food crisis, featured prominently on
the political agenda.

Design/methodology/approach
:- The chapter
reviews the radical structural changes in Norwegian dairy production since the
early 1960s, which reduced the number of milk farms radically from 148,000 in
1959 to almost 16,000 in 2009. According to the Agricultural Agreement between
the Norwegian government and the farmers’ organisations, the co-operatives are
given an important semi-public role as market-price regulators and stock
keepers. This Norwegian system may be described as a classical regulated dairy
regime. The Norwegian dairy regime has been through several deregulations and
re-regulations over the last 20 years, partly forced by internal pressures and
partly inspired by liberalisation tendencies abroad.

Developing scenarios for the
Norwegian travel industry 2025

Citation
:-  Anniken Enger, Kåre Sandvik, Endre Kildal Iversen, (2015) “Developing scenarios for the Norwegian travel
industry 2025”, Journal
of Tourism Futures, Vol. 1 Issue: 1, pp.6-18, https://doi.org/10.1108/JTF-12-2014-0018

Abstract :- TheNorwegian travel
industry faces decline in important international tourism segments and needs an
industry wide and future?oriented
strategy to face these challenges. Accordingly, a common understanding of
future drivers and different scenarios for the industry is needed. The paper
aims to discuss these issues.

Design/methodology/approach
:- Using
the process of scenario analysis and drawing upon the involvement of the
tourism industry, this paper describes the method, drivers, scenarios, and
implications.

 

Future development of
tourism

Citation :-  Dr Anton Würzl, (1980) “Future development of tourism”, The Tourist Review, Vol. 35 Issue: 2,
pp.2-7, https://doi.org/10.1108/eb057809

Abstract :- Those who wish to look into the
future are well advised to concern themselves first with the past, where all
things originate. Accordingly, it seems appropriate to quote Homer, the great
Greek poet, at the beginning of this presentation.

 

The
Integration of the Norwegian Oil Economy into the World Economy

Citation
:-   Lars Mjøset, , Ådne Cappelen, (2011), The Integration of the Norwegian Oil Economy into the
World Economy, in Lars Mjøset (ed.) The
Nordic Varieties of Capitalism (Comparative Social Research, Volume 28) Emerald
Group Publishing Limited, pp.167 – 263

Abstract :- Norway is a small nation state on the northernmost
coastline of Western Europe, integrated in the Western world economy. For
centuries Norway’s integration in the world economy had been based on exports
of raw materials such as fish and timber, as well as shipping services. In the
early 20th century, furnace-based metals (made possible by cheap hydropower)
were added to this export basket. Just as the world economy entered an
increasingly unstable phase in 1970s, another natural resource was discovered
in Norway: petroleum – that is, oil and natural gas from the North Sea.

Design/methodology/approach
:- This paper discusses about how the Norwegian Economy
was introduced to Oil and thus analysis the challenges and possibilities
inherent in the Norwegian strategy of developing an Oil economy in a world
economic situation influenced by new and stronger forms of international
integration through the four decades between 1970 and 2010.

 

 

 

 

 

 

 

 

 

Current Situation 2010 – 2017

Norway has been growing since
the agreement between WTO    ( GATT ) and Norway was signed on 05th
June, 1996. The Norwegian economy now
shows signs of continued growth, falling inflation and lower unemployment. The
average growth rate of the Norwegian Economy grew by 3.5% and inflation at
1.4%.

PUBLIC DEBT ( % of GDP )

Norway has recorded a
government debt equal to 35.60 percent of the country’s GDP in 2016. Government
Debt to GDP in Norway averaged 38.08 percent from 1980 until 2016, reaching an
all time high of 53.70 percent in 1993 and a record low of 27.40 percent in
2014. Public Debt to GDP is used to
measure a country ability to make future payments on its debt, thus affecting
the country borrowing costs and government bond yields. ·       
In terms of contribution to total value
added at basic prices, the most important individual sector in Norway is
petroleum and natural gas extraction at approx 24%.  The contributions of the agriculture and fishing
sectors have remained constant at less than 1% each, while the share of the
manufacturing and mining sector has slightly increased to approx 10%.  The weight of the service sector as a whole
has continued to increase, to more than 60% in 2007.

 

·       
The Norway GDP is projected
to trend around 478.00 USD Billion in 2020, according to our econometric models.

EXPORTS

·       
In 2016 Norway exported $89.4B, making
it the 30th largest exporter in the world. During the last five years the
exports of Norway have decreased at an annualized rate of -14.431%, from $159B
in 2011 to $89.4B in 2016. The most recent exports are led by Crude
Petroleum which represent 25.5% of the total exports of Norway,
followed by Petroleum Gas,
which account for 23.1%.

·       
Exports from Norway by 6.4 percent year-on-year
to NOK 76.81 billion in December of 2017, driven by natural gas (25.8 pct);
natural gas condensates (33.8 pct) and mainland exports (9.4 pct). Exports in
Norway averaged 25778.89 NOK Million from 1960 until 2017, reaching an all time
high of 91186.74 NOK Million in January of 2014 and a record low of 449 NOK
Million in July of 1960.·       
In 2016 Norway imported $72.3B, making
it the 34th largest importer in the world. During the last five years the
imports of Norway have decreased at an annualized rate of -5.675%, from $91.8B
in 2011 to $72.3B in 2016. The most recent imports are led by Cars which
represent 7.12% of the total imports of Norway, followed by Passenger and
Cargo Ships, which account for 2.96%.

·       
Imports to Norway went up 5.7 percent from a
year earlier to NOK 52.10 billion in December of 2017, due to manufactured
goods (11.4 pct); chemicals (22.1 percent), and machinery and transport
equipment (6.4 percent). Imports in Norway averaged 17391.05 NOK Million from
1960 until 2017, reaching an all time high of 84806 NOK Million in November of
2017 and a record low of 696 NOK Million in July of 1960. Lessons
Learned

The small
Scandinavian country of 5 million people does things differently. It has the
lowest income inequality in the world, helped by a mix of policies that support
education and innovation. It also channels the world’s largest sovereign wealth
fund, which manages its oil and gas revenues, into long-term economic planning.

Norway
has managed to translate economic growth into high and rising living standards,
with a GDP per capita of $89,741, well above the average of $44,656 for 30
advanced economies covered in our report. Although the cost of living is also
high in Norway, when adjusted for purchasing power parity it still has the
highest median income of the economies we covered, at $60.4 per person per day.

In the business sphere, it runs a Research Based Innovation (BIA) programme
allowing companies to apply for Research and Development (R) grants as
long as value is created not only for the company but for society too.
Similarly, the SkatteFUNN R tax
incentive scheme offers a tax credit to encourage R spending by Norwegian
companies.

Overall, Norway has
identified the weaknesses that its economy is exposed to – such as oil price
shocks – and harnessed its natural strengths to deliver broad-based growth,
employment and high living standards through long-term policies.

Calls for inclusive
growth have mounted. While Norway is more fortunate than most, it does offer
some valuable lessons to policy-makers from other parts of the world.

 

 

 

 

 

 

 

 

Future
Recommendation

The
oil and gas industry has played a vital role for the strong growth in the
Norwegian economy over the past 40 years. if we disregard the oil
sector’s contribution to growth for a moment, Norway’s mainland economy has
shown relatively robust developments. The ripple effects from activities on the
continental shelf to the wider economy have been wide-ranging. A growing number
of firms have targeted the oil industry. A state-of-the-art oil service
industry has emerged. For many firms, the contracts on the Norwegian
continental shelf have been a springboard to new export markets.

·       
Norway
have to Continue to ensure that strong macroeconomic policies cushion the
Norwegian economy from external shocks, and equitably and sustainably manage
its petroleum wealth. This includes a focus on the cost effectiveness of public
spending to ensure the now large oil wealth and tax revenue are well used.

·       
 Use structural policies to foster stronger
productivity growth and international competitiveness, and to smooth adjustment
towards less medium-term dependence on petroleum.

·       
Boost productivity through a more
supportive business environment and stronger competition.

·       
Getting the fiscal rule right, ensuring
efficient tax and public spending