The paper "Why Was an International Trade Organization Not Established" is a great example of macro & microeconomics coursework. In 1945, the United States government put forward a proposal for an International Trade Organisation (Aaronson 1996, p. 7). The efforts put up by the US were to come up with a noncontentious international economic and political order (‘ United States Government’ , 1946). The whole idea of coming up with this organisation was to complement the international monetary fund and the World Bank. This idea was to increase and expand world trade organisation employment (Diebold 1952, p.
90). The proposal set out rules to govern trading activities to be conducted between members’ states (Jackson 1994, p. 37). In addition to rules, the proposal set forth restrictive business activities, trade barriers, as well as intergovernmental commodity arrangements (Diebold 1952, p. 25). Towards the preparatory committee meeting in London 1946, a total of 19 countries backed up the proposal (‘ United States Government’ , 1946). The countries arranged for a conference to draft a charter that all the members’ states will sign into an agreement. However, most countries were not in agreement with these suggested structures and policies (Trofimov, 2012, p.
56). This thesis will look into the reasons that lead to the decline of establishing the international trade union. The paper also looks at the development that led to the demise of the international trade organisation initiative in 1944 (Trofimov, 2012, p. 56). The United Nations Monetary and financial conference, which was known as the Bretton Woods conference was held at New Hampshire U. S. immediately the world war two concluded (Jackson 1994, p. 44). This conference was to come up with an international bank for reconstruction and development (IBRD) in the countries that were at war.
The bank was to be supplemented by the International monetary fund and General Agreement on Tariff and Trade (Palmeter & Mavroidis 2004, p. 105). IBRD was later transformed into World Bank. These three entities were to marsh up and form the International trade organisation. However, post-war reconstruction and political instability in most countries stalled the effort to establish the ITO (Diebold 1952, p. 84).
Aaronson, S 1996, Trade and the American dream: a social history of post-war trade policy, Lexington: University Press of Kentucky.
Bidwell, P. W., & Diebold, W 1949, ‘The United States and the International Trade Organization’, International Conciliation, Vol. 27, pp. 187-239.
Bossche, P van den 2005, The Origins of the WTO, Cambridge University Press.
Diebold, W 1952, The end of the ITO, Princeton Department of Economics Working Paper No.16. Princeton: New Jersey.
Jackson, J H 1994, "Managing the Trading System: The World Trade Organization and the Post-Uruguay Round GATT Agenda", in Peter B. Kenen, Managing the World Economy: Fifty Years after Bretton Woods. Institute for International Economics.
Kenen, P B 1999, ‘The Evolution of Trade Policy’. The International Economy (Vol. I 3rd ed). Cambridge University Press.
Palmeter, N D & Mavroidis, P C 2004, ‘Overview’. Dispute Settlement in the World Trade Organization: Practice and Procedure. Cambridge University.
Trofimov, I D 2012, ‘The Failure of the International Trade Organization (ITO): A Policy Entrepreneurship Perspective’, Journal of Politics and Law, Vol. 5 No. 1, pp 56-68.
United States Government. 1946. ‘Basic principles in establishment of International Trade Organization’, Washington: US Department of State Bulletin, October 27, pp. 757-760.
United States Government. 1946. Suggested Charter for an International Trade Organization of the United Nations. Washington, US Department of State.