ABSTRACT
In April 1994 the seven-year long Uruguay Round of trade talks was closed formally in Marrakesh. Tariffs would be reduced substantially and a number of non-tariff barriers would be removed.1 The agreement was signed there, together with the agreement to create the World Trade Organisation (WTO). Since then the major trading nations have ratified the GATT Accord. It became effective in 1995. During the middle of the 1980s the internationalisation of the economy accelerated. Since the fall of the Berlin Wall in 1989, the rise of East Asia and the prospect of further economic integration (Europe 1992 and the Uruguay Round of GATT), international relations have changed rapidly. Economic growth is high in East Asia and jobs are moving from Western to Eastern Europe and Asia. The internationalisation of the economy has led to increased trade and globalisation of capital flows. Technological development, improved communications, a more liberal investment climate in many developing countries and lower costs of transportation have all contributed to these developments. In particular the East Asian developing countries have benefited enormously from the gradual liberalisation of world trade since 1947. Development takes place where there are structures. Trade negotiations result in international structures which reduce risks and facilitate trade; of crucial importance is the role of the private sector in the development process. Rapid economic growth is largely the result of the market or private initiative, backed up by investments in infrastructure and education, liberalisation of trade and financial services and sound macroeconomic policies.2
