ABSTRACT
For one thing, 60 per cent of internal OECD trade is within the European Economic Area, consisting of the European Union (EU) and the remaining European Free Trade Association (EFTA) countries. But Western Europe has regulated both its internal trade (except for trade in agricultural goods between the EU and EFTA) and the rules governing freedom of establishment, according to its own set of laws, which are more far-reaching compared with those of GATT. Tariff-free trade between the North American Free Trade Area (NAFTA) countries (USA, Canada, Mexico) and between Australia and New Zealand has, similarly, to be excluded. Overall, a residue of only a little less than one-third of total internal OECD trade remains which is subject to the most favoured nation (MFN) duties agreed in the GATT-in other words to which the Uruguay Round is relevant.
