General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT) was the first multilateral agreement regulating international trade. The agreement was signed in 1947 and went into effect in 1948. The GATT was designed to promote free trade by reducing tariffs and other trade barriers. The agreement also established a dispute settlement mechanism to resolve trade disputes between member countries.
The GATT was a success in reducing tariffs and other trade barriers. However, the agreement was not able to address the problem of non-tariff barriers to trade, such as quotas and subsidies. In 1995, the GATT was replaced by the World Trade Organization (WTO). The WTO is a more comprehensive agreement than the GATT, and it addresses both tariffs and non-tariff barriers to trade.
The GATT was a significant achievement in the history of international trade. The agreement helped to promote free trade and economic growth around the world. The GATT also played an important role in the development of the WTO.
Here are some of the key provisions of the GATT:
- Tariffs on most goods were to be reduced by an average of 35% over a period of 10 years.
- Tariffs on some goods were to be eliminated entirely.
- Non-tariff barriers to trade, such as quotas and subsidies, were to be reduced or eliminated.
- A dispute settlement mechanism was established to resolve trade disputes between member countries.
The GATT was a success in reducing tariffs and other trade barriers. However, the agreement was not able to address the problem of non-tariff barriers to trade, such as quotas and subsidies. In 1995, the GATT was replaced by the World Trade Organization (WTO). The WTO is a more comprehensive agreement than the GATT, and it addresses both tariffs and non-tariff barriers to trade.
The GATT was a significant achievement in the history of international trade. The agreement helped to promote free trade and economic growth around the world. The GATT also played an important role in the development of the WTO.