Mechanics of East-West Trade in the GATT
The GATT, as shown in Chapter 3, was drafted for market economies, controlling their trade essentially by means of price-mechanism devices, and resorting to state trading only occasionally. Its provisions could therefore be expected to apply only with difficulty to Eastern European state-trading economies controlling their trade by means of plan targets, especially in view of the GATT principles of non-discrimination and reciprocity and to the GATT rules on integration. Chapter 4, however, showed that while the economic systems of Poland and Romania at the time of accession were centrally-planned and geared to state trading, Hungary’s was a state-trading system in the process of introducing price-mechanism devices to which the GATT provisions could, therefore, be expected to apply fairly readily.
KeywordsContracting Parti GATT System Tariff Reduction CMEA Country Periodic Consultation
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