The global economy has also changed over the past two decades. Several developing countries, including China, Brazil and India, have developed successful export strategies to exploit the global market. China joined the WTO and overtook Japan to become the world`s second largest economy, and the U.S. trade deficit today with China is far larger than its deficit with Japan.  In 1972, I was new to trade policy and my first mission was to analyze the CE-EFTA trade agreement to determine whether it complied with GATT rules and whether compensation could be due in the United States. After careful consideration of the agreement and finding nothing, I came to the huge annex that set out the rules of origin of the agreement. At first I thought it was just “technical,” but then I looked at it carefully, only to find that it was very protectionist. B a rule stipulated that an electronic product could only be processed duty-free if it contained less than 3% of the semiconductors in non-COMMUNITY EFTA countries. The United States has launched a consultation on Article XXII of the GATT, which has resulted in some changes to the CE-EFTA regulation.
However, in a very important step, the Negotiators of the Uruguay Round took radically new paths by addressing some extremely important issues, outside the traditional GATT axis, on trade in goods, namely investment, services and intellectual property protection. Unfortunately, these rules were almost totally ineffective and today preferential trade is almost the rule, not the exception. The WTO reports that 354 agreements were notified and came into force in January 2013. Free trade agreements account for more than 90% of these notified agreements and customs unions account for less than 10%.  In addition to these WTO/GATT-notified agreements, there are others that have not been notified or are at a very early stage of negotiations. With the failure of the WTO Development Doha Round, the United States has turned its attention to two major regional negotiations that, if successful, could have a significant impact on the global trading system. The first relates to negotiations for a Trans-Pacific Partnership (TPP) agreement that would remove trade barriers between 12 Asia-Pacific countries. The second is the negotiation with the European Union of a Transatlantic Trade and Investment Partnership (TTIP) agreement that would create a free trade area between the world`s two largest trading blocs.