Issues Surrounding Global Economics
By: Sammy and Daxton
OPEC (Organization of Petroleum Exporting Countries):
This is the organization of countries monopolizing the export of petroleum products. The Arab and muslim states that were apart of it wanted to raise the price of oil through cooperation. The price of oil quadrupled from 1973 to 1974. The increase in cost led to an economic downturn. OPEC's policies contributed to the global recession and debt crisis that many developing nations were experiencing. OPEC's influences eventually diminished in the 1980s and 1990s due to overproduction and dissension among its members.
GATT (General Agreement on Tariffs and Trade):
The main vehicle for the promotion of unrestricted global trade was GATT. The members held a serious of negotiations with the intent of removing barriers to free trade. After the negotiations, member negotiators signed an agreement to establish the World trade organization (WTO) which took over the activities of GATT. Although trade slowed, world trade exceeded 6 trillion US dollars
ASEAN (Association of Southeast Asia Nations):
It was established by Malaysia, Singapore, Indonesia, and the Philippines. Their objectives were to accelerate economic progress and promote political stability in Southeast Asia. Member states of ASEAN agreed to a free trade zone and to cut tariffs on industrial goods over a 15 year period. Representing the largest of these trade blocs was the European Union, EU, which has been able to distance itself from the influence of the US.
NAFTA (NORTH AMERICAN FREE TRADE AGREEMENT):
This went into effect in 1994,and is the worlds second largest free trade zone. There are plans to spread NAFTA to all noncommunist nations in the Americas.