Over this period, barriers to trade fell. Average tariffs in the United States, Germany, and Japan fell by more than half.18 The membership of the World Trade Organization (formerly the General Agreement on Tariffs and Trade) rose from 18 countries in 1948 to 146 countries in 2003.
And free-trade areas, led by the European Union and NAFTA, have increased from 1 in 1958 to 161 in 2003. Transportation and communication costs have also fallen over time. Despite all this progress, significant barriers to trade still exist. Policy barriers such as tariffs, quotas, and licensing restrictions are especially important in the areas of agriculture and services.