Trade Organizations and Agreements Overview

Trade Organizations and Agreements

• Governments use trade agreements to promote international trade and economic growth.
• Trade agreements establish rules for trade and investment in goods and services.
• Trade agreements can also be used to promote peaceful relationships between countries.

International Organizations

• The World Trade Organization (WTO) is a global organization that regulates and liberalizes international trade.
• The WTO replaced the General Agreement on Tariffs and Trade (GATT) in 1995.
• The United Nations (UN) is an international organization that promotes peace, security, and cooperation among countries.
• The International Monetary Fund (IMF) is an international organization founded in 1944 to support global monetary cooperation and reduce poverty.
• The World Bank is an international financial institution that provides loans and grants to poorer countries for capital projects.
• The G7 is an informal grouping of advanced democracies that meets annually to coordinate global economic policy.

Canada’s Involvement in International Organizations

• Canada is a member of the WTO, UN, IMF, and World Bank.
• Canada benefits from the economic assessments and recommendations of the IMF, which help inform Canadian economic policies.
• Canada has bilateral tax treaties with 92 countries to prevent tax evasion and reduce double taxation.

Types of Trade Agreements

• Regional agreements involve groups of countries, such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).
• Bilateral agreements involve two countries or groups of countries.

Trade & Investment Agreements

• The United States-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA).
• The USMCA aims to enhance trade and economic cooperation among the United States, Canada, and Mexico.
• The Comprehensive Economic and Trade Agreement (CETA) is a treaty between Canada and the European Union.
• CETA will eliminate 98% of tariffs between Canada and the EU.
• The Asia-Pacific Economic Cooperation (APEC) is an organization that promotes free trade among its member countries.
• The Trans-Pacific Partnership (TPP) is a trade agreement that creates a free trade zone among its member countries.
• The TPP also known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This quiz explores key trade organizations and agreements that shape international commerce. It covers the roles of the WTO, IMF, and World Bank, as well as the impact of trade agreements on economic growth and international relations. Test your understanding of how these entities function to promote trade and cooperation among nations.