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50 years of GATT/WTO 1948-1998  back to top

• Merchandise trade grew by 6% annually, or 18 fold.
• Merchandise output grew by 4.2% annually, or 8 fold.
• The share of world GDP represented by merchandise trade grew from under 7% to 17.4%.
• Aggregate world trade in 1998 was $6.6 trillion, of which $5.3 trillion (80%) was merchandise and $1.3 trillion (20%) was commercial services. (Merchandise trade in 1948 was $58 billion.)
• GDP per capita grew by 1.9% annually.
• On average, per capita income is 2.5 times higher in 1998 than in 1948.

FDI flows and global integration  back to top

• Global FDI flows grew 27 fold (or 14% annually) between 1973 and 1998.
• Global FDI flows reached $645 billion in 1998 ($24 billion in 1973, $60 billion in 1985).
• Global FDI stock rose 8 fold since 1980 or 12.5% annually.
• Global FDI stock stood at $4,100 billion in 1998.
• Cross-border mergers & acquisitions topped $544 billion in 1998, more than three times the average of $145 billion during 1990-94.
• The ratio of FDI inward stock to GDP more than doubled between 1980 and 1997 globally, from 5.0% to 11.7%.
• For developing countries, the corresponding ratio almost tripled from 5.9% to 16.6%.
• For least-developed countries, the ratio rose from 2.2% in 1980 to 5.7% in 1997.

Duty-free treatment for imports from least-developed countries  back to top

• In 1998, US imports from the 48 least-developed countries (LDCs) amounted to $6.3 billion or 0.7% of total US merchandise imports.
• If US granted duty-free treatment to imports from LDCs, the US tariff revenue loss would be $123 million out of a total US tariff revenue of $17,500 million.

Trade benefits for US workers and consumers  back to top
(Figures from USTR website)

• Full implementation of WTO agreements (by 2005) will boost US GDP by $125–250 billion per year.
• The annual effect will be equivalent to an increase of $1500–$3000 in purchasing power for the average American family of four.
• Between 1994 and 1998, 1.3 million new jobs supported by exports were created in the US.
• Over the same period, total US employment increased by 11.7 million jobs, and the unemployment rate declined from 6.1% to 4.5%.
• Nearly 12 million jobs in the US (or almost 10% of all US jobs) depend on US exports.
• Jobs in the US supported by goods exports pay 13–16% above the average wage.
• Over 60% of the US economy and 80% of US jobs are accounted for by the services sector.
• The US is the world’s largest exporter of services totalling over $264 billion annually.

Global benefits from 40% cuts in trade protection  back to top
(Figures from World Bank conference paper "Agriculture & Non-Agricultural Liberalization in the Millennium Round", Oct 1999)

Estimated global gains as a result of 40% cuts in protection by 2005 in the following areas:

• Agricultural subsidies & market price support $69.3 billion
• Tariffs on manufactures & mining products $69.6 billion
• Business, finance & construction services $21.6 billion
• Trade, transport & government services $332.6 billion

GATT/WTO: 50 years of tariff reductions  back to top

MFN tariff reduction of industrial countries for industrial products, excluding petroleum

NOTE: Tariff reductions for the first five trade rounds refer to US only

a) Source: US Tariff Commission, Operations of the Trade Agreements Program,
1st to 13th report covering June 1934 to June 1960

b) refers to four markets: US, Japan, EC(6), and UK.
Source: Ernest H Preeg, Traders and Diplomats, Tables 13-1 to 13–4
and WTO calculations based on 1964 import values

c) refers to eight markets: US, EU(9), Japan, Austria, Finland, Norway, Sweden, Switzerland
Source: GATT, COM.TD/W/315, 4.7.1980, p.20–21 and WTO calculations

d) refers to eight markets: US, EU(12), Japan, Austria, Finland, Norway, Sweden, Switzerland
Source: GATT, The Results of the Uruguay Round of Multilateral Trade Negotiations,
November 1994, Appendix Table 5 and WTO calculations.

World trade and output  back to top
Selected Indicators, 1948-98