ABSTRACT
I A NEW INTERNATIONAL MONETARY SYSTEM The ideal would be that trade barriers should be confined to tariffs and that the adjustment of international balance of payments be left with overall adjustment measures. However, the reality is that overall adjustment measures per se do not work promptly and effectively with the result that some countries have an unfavourable trade balance while others have a favourable balance for prolonged periods. Hence the difficulties in removing non-tariff barriers and the fears that they might, instead, be increased. Thus, more than anything else, the streamlining of the international monetary system and foreign exchange rates so that overall adjustment measures can function promptly and effectively is necessary. Though it is not clear what sort of cooperative relation exists between GATT and the IMF, it is difficult to see how trade liberalisation can be negotiated with GATT as its focus and how it can be prompted by means of tariff cuts or the reduction and removal of non-tariff barriers without regard to the international monetary situation. If the latter is in a state of confusion, liberalisation of trade can only regress.
