The mutual commitment against raising the tax rates covers many compulsory products, for which prices are moderate and, most importantly, guarantees free access to many goods. Duty-free import insurance applies to many Canadian products, for which the United States was generally the main sales and which accounted for about half of canada`s total exports to the United States prior to the signing of the trade agreement. [i] Similarly, the guarantee of continued free entry into Canada for raw materials such as cotton, raw wood, cheap traction engines, hides and hides, and lemons is of real commercial importance to the United States. This regime departs from the principle that underlies the Canada-U.S. agreement. This is an adaptation to the type of bilateral trade regime that is now common in Europe. It can create a competitive disadvantage for sales in Germany from other countries, including the United States, in part because it refers to certain Canadian products for which the exchange must be provided. It is difficult to predict whether the Canadian-German agreement will affect the long-term competitive position of U.S. products in the Canadian market relative to German products.
The Canadian government`s recent decision to put the value of the mark at customs at 32 cents instead of the official 40-cent rate could facilitate such a development. If Canada`s use of such an agreement were to have a negative impact on the U.S. position in the Canadian market, the end result would be to disprove the basis of equality that underlies the agreement. As I have already said, the fact that other countries are somewhat involved in the enlargement of trade created by the agreement was part of the initial draft of the negotiators. In international trade (as in domestic trade), those who can produce and sell more generally tend to buy more — a trend that is however strongly hampered by current restrictions. In addition, each country expects that its trade with the outside world will benefit from the protection of the equality rule. It can certainly be said that the generalization of the reductions granted did not reduce the value of the agreement for either country. Under the leadership of the United States and the United Kingdom, international cooperation has flourished and concrete institutions have been created. The discussions that began at the Bretton Woods Conference of 1944 were the International Monetary Fund.
The first international trade agreement, the General Agreement on Tariffs and Trade (GATT), was established in 1949.