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The rest of the chapter unfolds as follows. In Section 2, we present a number of models and outline the problem that a trade agreement could solve. Based on our findings in Section 2, Section 3, reciprocity is addressed, Section 4 deals with links and overhangs. Finally, in Section 6, other important features are briefly explained and completed. For most countries, international trade is governed by unilateral trade barriers of various kinds, including tariffs, non-tariff barriers and absolute prohibitions. Trade agreements are a way to reduce these barriers and thus open up the benefits of enhanced trade to all parties. The Trade Act of 1974 also made some changes that have a direct impact on the telecommunications industry. First, the Office of the Trade Representative of the United States15 was created to cooperate with Congress on trade issues16 and safeguards were provided for under Title II and safeguards against unfair Trade Practices in Title III. It is significant that Section 201 of the Trade Act of 1974 seeks to exempt harm from import competition, including adjustment assistance for workers, businesses and communities,17 and section 301, which have enforced U.S.
rights under their trade agreements.18 When the U.S. government applies this law to protect the rights of U.S. businesses,17 and section 301, which have enforced U.S. rights under their trade agreements.18 When the U.S. government applies this law to protect the rights of U.S. businesses. , including telecommunications companies, efforts are called Section 201 or Section 301 Shares. Even in the absence of the constraints imposed by the most favoured nation and national treatment clauses, it is sometimes easier to obtain general multilateral agreements than separate bilateral agreements. In many cases, the potential loss resulting from a concession to a country is almost as great as that which would result from a similar concession to many countries. The benefits to the most efficient producers from global tariff reductions are significant enough to warrant substantial concessions.
Since the implementation of the General Agreement on Tariffs and Trade (GATT, 1948) and its successor, the World Trade Organization (WTO, 1995), global tariffs have declined considerably and world trade has increased. The WTO contains provisions on reciprocity, the status of the most favoured nation and the domestic treatment of non-tariff restrictions.