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A. Complete the following statements.
1. Regarded as a process, it encompasses measures designed ….
2. Whereas cooperation includes actions aimed at lessening discrimination, …
3. In a free-trade area, tariffs (and quantitative restrictions) between the participating countries are abolished, but each country….
4. An economic union, as distinct from a common market, combines …
5. The integration of adjacent countries amounts to ….
6. Yet GATT has allowed several exceptions to MFN principle such as, for example, ….
7. Formation or enlargement of RTAs, at the same time, candivert ….
B. Find key statements in each paragraph of the texts. Summarize the information and render the texts.
C. Discuss the following issues in teams:
1. Distinction should be made between integration and cooperation.
2. Economic integration, as defined here, can take several forms that represent varying degrees of integration.
3. There are two essential features of Article XXIV as it relates to a Customs Union.
4. Academic debate over the effects of the proliferation of regional trade agreements (RTAs) has mostly focused on the trade diversion vs. trade creation question.
5. Formation or enlargement of RTAs, at the same time, can divert part of the initial foreign investment from some member countries to others.
6. Cost asymmetries among member countries leave RTAs vulnerable to defection by high-cost countries and may cause their failure even when the net gain for the region is positive.
7. There are certain reasons for the swift development of regional trade relations nowadays.
ACTIVITIES
1. Study the text Evolution and Tendencies in the Development of Regional Trade Agreements and draw up possible perspectives for the Republic of Belarus in developing regional trade relations. Use of other recourses is highly recommended.
2. Make up a conversation between representatives of different countries about the silent success story of Customs Unions in the area of regional integration.
WRITING
A. Write a short essay on one of the following issues:
1. A higher form of economic integration is attained in a common market.
2. Modern tendencies in the development of regional trade agreements.
B. Translate the following sentences into Russian:
1. Whereas cooperation includes actions aimed at lessening discrimination, the process of economic integration comprises measures that entail the suppression of some forms of discrimination.
2. Establishing a customs union involves, besides the suppression of discrimination in the field of commodity movements within the union, the equalization of tariffs in trade with nonmember countries.
3. The integration of adjacent countries amounts to the removal of artificial barriers that obstruct continuous economic activity through national frontiers.
4. In other words, it mitigates the relocation problem while maintaining the benefits from investment expansion.
5. Regarded as a process, it encompasses measures designed to abolish discrimination between economic units belonging to different national states.
6. Economic integration, as defined here, can take several forms that represent varying degrees of integration.
7. The integration of adjacent countries amounts to the removal of artificial barriers that obstruct continuous economic activity through national frontiers, and the ensuring relocation of production and regional agglomerative and deglomerative tendencies cannot be adequately discussed without making use of the tools of locational analysis.
8. Customs Unions (Cus), regional trade agreements committing members to zero internal tariffs and a common external tariff (CET), are few in number compared to the sprawling of Free Trade Areas (FTAs), accounting for less than 10% of trade agreements.
9. The article made it clear that any contracting party of the GATT deciding to enter into a CU or FFA or an interim agreement shall promptly notify the other contracting parties of their intentions to do so and, presumably, to agree to abide by the requirements of article XXIV.
10. It is clear that even if the contracting parties wished to enforce Article XXIV they would have run into difficulties.
C. Translate the following sentences into English:
1. На конец 1989 г. было зарегистрировано 24 РТС по товарам и 2 – по услугам.
2. Они создавались как на многосторонней основе, так и двусторонней, в основном, между граничащими странами.
3. Многие из подписанных интеграционных соглашений предполагали преференции по отдельным товарам или являлись рамочными, закладывали основу для развития интеграции стран в будущем.
4. Очевидно, что в этот период развитие интеграционных отношений между странами не оказывало существенного влияния в целом на мировую торговлю.
5. Именно в это время наблюдается наибольшая активность в формировании региональных торговых соглашений, возникли или окончательно сформировались практически все крупные региональные интеграционные группировки стран.
6. С одной стороны, мы наблюдаем активное взаимодействие в форме межрегиональных РТС, а с другой – основополагающей тенденцией становится формирование «континентальных» торговых блоков.
7. Новые РТС становились более комплексными с охватом более широкого круга вопросов, которые не регулируются соглашениями ВТО.
8. Усилились так называемые тенденции Юг-Юг в мировой торговле и прямом зарубежном инвестировании.
9. Все больше создается соглашений, включающих положения, связанные с социальными и экологическими вопросами.
10. Активизировалось заключение РТС между развивающимися странами.
UNIT II
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