Organizations and Agreements

G20

The Group of Twenty Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy. Member countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, United States of America

World Trade Organization (WTO)

Global international organization dealing with the rules of trade between nations formed in 1995. Previously called GATT-the General Agreement of Tariffs and Trade formed in 1948. The World Trade Organization deals with the rules of trade between nations at a near-global level; it is responsible for negotiating and implementing new trade agreements, and is in charge of policing member countries' adherence to all the WTO agreements, signed by the bulk of the world's trading nations and ratified in their parliaments. Most of the WTO's current work comes from the 1986-94 negotiations called the Uruguay Round, and earlier negotiations under the GATT. The organization is currently the host to new negotiations, under the Doha Development Agenda (DDA) launched in 2001. Although the stated aim of the WTO is to promote free trade and stimulate economic growth, some believe that globally free trade results in the rich (both people and countries) becoming richer, while the poor are getting poorer.

World Bank

Officially, the International Bank for Reconstruction and Development formed in 1945 is an internationaly supported bank that provides loans to developing countries for development programs with the stated goal of reducing poverty. Some critics of the World Bank believe that the institution was not started in order to reduce poverty but rather to support US business interests, and that the bank has actually increased poverty.

G8

The Group of Eight (G8), also known as Group of Seven and Russia, is an international forum for the governments of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States. Together, these countries represent about 65% of the world economy and the majority of global military power (7 of the top 8 positions for military expenditure, and almost all of the world's active nuclear weapons.) The group's activities include year-round conferences and policy research, culminating with an annual summit meeting attended by the heads of government of the member states. The European Commission is also represented at the meetings.

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) went into force in 1994. It eliminated the majority of tariffs on products traded among the United States, Canada and Mexico, and gradually phases out other tariffs over a 10-year period. President Trump withdrew the United States from NAFTA and negotiated a new agreement known as the United States-Mexico-Canada Agreement (USMCA) which still needs to be ratified by the US Congress. Here are the biggest changes: Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA). Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico passed new labor laws (Links to an external site.) to give greater protections to workers. Democrats still want tougher enforcement, though. US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump. Intellectual property and digital trade: The deal extends the terms of copyright (Links to an external site.) to 70 years beyond the life of the author (up from 50). It also extends the period that a pharmaceutical drug can be protected from generic competition, and includes new provisions to deal with the digital economy, such as (Links to an external site.) prohibiting duties on things like music and e-books, and protections for internet companies so they're not liable for content their users produce. Sunset clause: The agreement adds a 16-year "sunset" clause — meaning the terms of the agreement expire, or "sunset" after 16 years. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.

The Trans-Pacific Partnership (TPP)

The Trans-Pacific Partnership (TPP) is a trade agreement (Links to an external site.) among twelve Pacific Rim (Links to an external site.) countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and United States) concerning a variety of matters of economic policy (Links to an external site.). Although the U.S. government gave the primary push for it, we ultimately backed out. The remaining 11 countries negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which incorporates most of the provisions of the TPP and which enters into force on 30 December 2018. After President Trump's election the United States did not join the agreement.

International Monetary Fund (IMF)

an international organization that oversees the global financial system by observing and stabilizing exchange rates and balance of payments, as well as offering financial and technical assistance. The United States contributes the most with 18 % of total quotas and therefore has the most voting power. Two criticisms from economists have been that financial aid is always bound to so-called "Conditionalities", including Structural Adjustment Programs. Conditionalities, which are the economic performance targets established as a precondition for IMF loans, it is claimed, retard social stability and hence inhibit the stated goals of the IMF, while Structural Adjustment Programs lead to an increase in poverty in recipient countries.

The Dominican Republic-Central America Free Trade Agreement

commonly called DR-CAFTA, is a free trade agreement (legally a treaty under international law, but not under US law). Originally, the agreement encompassed the United States and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and was called CAFTA. In 2004, the Dominican Republic joined the negotiations, and the agreement was renamed DR-CAFTA.