Crises and International Trade
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Transcript of Crises and International Trade
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Christian Caratas, Tamara Vujicic
Alexandru Caratas, Jeanne Whitesides, Nicole Michaud
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ANCIENT
◦ Trade of goods over long distances
◦ First record: 19th century BC
◦ Arabian nomads in the Far East
◦ Greeks exploit trading opportunities with
India prior to the Roman Empire
◦ Silk Road
◦ Incense Route for the luxury goods
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EARLY MODERN
◦ Vasco da Gama
◦ 1592 first foreign trade
licenses to prevent
smuggling and piracy
◦ 1602 foundation of
“The Dutch East India
Company”
POST MODERN
◦ 1946 Bretton Woods system
◦ 1947 General Agreement on
Tariffs and Trade
◦ 1958 E.E.C.
◦ 1960 E.F.T.A.
◦ 1994 N.A.F.T.A. takes effect
◦ 1995 foundation of WTO
◦ 2002 launching of the Euro
Zone
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Tulip Mania: 1936 - 1937
The Great Depression: 1929 – 1939
Oil Crisis: 1973
Black Monday: 1987
Financial Crisis: 2007 - 2008
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What caused the Great Depression ?
A combination of domestic and worldwide
conditions
A combination of a stock market crash, bad
banking structure and tight monetary policy
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The crisis started in October 1973
The members of OPEC proclaimed an oil
embargo
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Also known as the Global Financial Crisis 2008
Considered by many economists the worst
financial crisis since the Great Depression of
the 1930s
Threat of total collapse of large financial
institutions, the bailout of banks by national
governments, and
downturns in stock
markets around the world
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Propagation of crisis because of
international trade
Unclear impact:
Drop in imports?
Rise in exports?
Lagging effect
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Tough Macro situation
Trade protectionism
Boosting domestic production
Selective reduction
WTO constraints and incentives
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International trade:
drop by more than
50%
Spiral effect
Weak Macroeconomic
stability
Plunge in production
worldwide
Structural changes in
composition
Fall in oil imports
Rise in imports of
substitute goods
Restructuring for
sustainable energies
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Main trade-limiting measures taken by countries in the wake of the financial crisis
Measure
• General Tariff
Hike
WTO agreement
• GATT
Country /Region
• Russia, India,
Turkey, Viet
Nam, Ukraine,
EU, Brazil,
Ecudor
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Main trade-limiting measures taken by countries in the wake of the financial crisis
Measure
• Standards and
Certification
WTO agreement
• TBT
Country /Region
• Mayalsia,
India,
Indonesia,
Ecudor,
Thailand,
South Korea
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Main trade-limiting measures taken by countries in the wake of the financial crisis
Measure
• Import
Licensing
System
WTO agreement
• Agreement on
Import
Licensing
Procedures
Country /Region
• India,
Indonesia,
Argentina
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Main trade-limiting measures taken by countries in the wake of the financial crisis
Measure
• Government
Procurement
WTO agreement
• Agreement on
Government
Procurement
Country /Region
• US, Indonesia,
Australia,
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Main trade-limiting measures taken by countries in the wake of the financial crisis
Measure
• General Tariff
Hike
WTO agreement
• GATT
Country /Region
• Russia, India,
Turkey, Viet
Nam, Ukraine,
EU, Brazil,
Ecudor
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Main trade-limiting measures taken by countries in the wake of the financial crisis
Measure
• Consumer
Subsidies
WTO agreement
• GATT
Country /Region
• Malaysia
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Sources:
http://www.porttechnology.org/
http://www.nber.org/
http://www.un.org/en/unitar_economiccrisis_tradeshocks.pdf
http://www.ceps.eu/system/files/article/2009/10/264-293-Forum.pdf
http://www.twnside.org.sg/title2/wto.info/2009/twninfo20090601.htm
http://en.wikipedia.org/wiki/International_trade
http://unctad.org/en/docs/ditctab20102_en.pdf