That this principle might be waived in the interests of the developing countries. Significant progress

Had been made through the GATT (now WTO) in the reduction of tariff levels by means of a series of

Negotiations, among which the Uruguay round of trade negotiations was the most prominent.

Vocabulary Notes to Text 4.7.1.3

To levy on an ad valorem basis... — взимать с объявленной цены, взятой за основу...

To retaliate — применять репрессалии

Vulnerable — уязвимый

Concessions — уступки

To waive — отказывать(ся) от права (от требования)

4.7.1.4. Read the additional text '‘Arguments for Protective Measures” for six minutes and think

About its contents. Give the annotation of it in Russian.

Arguments fo r Protective Measures

Let us consider the reasons the protectionists hold for justifying trade barriers. The main one is an

Argument in support of the retention of a protective import tariff to promote the creation of a local

Industry. It is held to apply in cases where an industry cannot operate at an optimum least-cost output

Until it has reached a sufficient size to obtain significant economies of scale. A new industry, therefore,

in, say, a developing country, will always be in a competitively vulnerable position vis-a-vis an

Established industry in an advanced country. It follows that the stage of growth at which the industry

(or country) can “take off” (Rostow, W. W.) industrially will be postponed indefinitely. The argument