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Introduction
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internationaleconomicdiplomacyplayersanddescribesthedifer-
encesbetweeneconomicandcommercialdiplomacy.Interestin
economicdiplomacyhasneverbeengreater,anditwitnessesaspec-
taculargrowthinthenumberofdebates,articles,andcontroversies.
Traditionallyeconomicdiplomacywascharacterizedbyfragmented
state-to-statediplomacy.Incontrast,inanewglobaleconomicarchi-
tectureitconsistsofbothgovernmentsandnon-stateplayers,such
asinternationalorganizations(WTO,IMF,WorldBank,ILO,UNCTAD,
OECD,ITC,WIPO,etc.),non-governmentalorganizations,transna-
tionalcorporationsandregionaltradeagreements.Thediversityof
mainactorsresultsinthescopeofeconomicdiplomacy,whichen-
compasseseconomicpolicyissuesrelatedtotradeliberalization,de-
velopment,andtradedisputes.
Chapter2isacomprehensiveliteraturereviewonthebackground
ofthemultilateraltradingsystem.TheWTOisarules-basedregime
integratingcountrieswithdiferentexpectationsandneeds,diferent
economicdevelopmentlevels,andasymmetricaleconomiesofdif-
ferentpoliticalpower.Thischapterprovidestheeconomicrationale
behindtheWTO.TheWTO’seconomicfoundationliesinthetheory
andargumentsthatfreetrademakesnationsbetterofandleadsto
theirwelfare.Inthelastpartofthechapter,therationalefortradein-
terventionpoliciesisdiscussed.Theauthorsconsiderthearguments
regardingtraderestrictionsandtherationalefortradeprotectionism.
Chapter3introducesthereadertotheWTO,coveringthemoti-
vationfortheWTO’screation,itsrole,anditsimpactonglobaltrade.
SincetheGATTandtheWTO’screation,therehasbeenagradual
reductionintarifsaccompaniedbyagradualrevivalofprotectionism.
TheWTO’sroleistoprovideaplatformformultilateraltradeliberali-
zationinordertoremovebarriers.Thechapterpresentsabriefhistory
oftheWTOfromtheHavanaCharterandtheITOtotheGATT,and
ananalysisoftheWTO.Theauthorsdescribeherethesimilaritiesand
diferencesbetweentheGATTandtheWTO.