International Trade Policy in a Globalizing Economy

THIS ARTICLE EXAMINES THE "GLOBALIZING" FORCES THAT HAVE LED TO INTEGRATION OF THE ECONOMIES OF THE NATIONS OF THE WORLD--AS IS MOST PROMINENTLY SEEN IN THE SUCCESSES OF THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND THE WORLD TRADE ORGANIZATION (WTO). IT ALSO CONSIDERS THE CHALLENGES TO GLOBALIZATION OF INTERNATIONAL TRADE, MOST NOTABLY THE GROWING TREND TOWARDS REGIONAL TRADE AGREEMENTS. IT CONCLUDES THAT IN TERMS OF REACHING THE IMPORTANT GOAL OF A UNIVERSAL, NON-DISCRIMINATORY BODY OF RULES THAT HELP LIBERALIZE AND MANAGE A RAPIDLY GLOBALIZING ECONOMY, THE WTO IS THE BEST POLICY, AND REGIONAL FREE TRADE AGREEMENTS ARE SECOND-BEST.