General Agreement on Tariffs and Trade

General Agreement on Tariffs and Trade (GATT) was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."

History

The General Agreement on Tariffs and Trade was first discussed during the United Nations Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). GATT was formed in 1948 and lasted until 1994, when it was replaced by the World Trade Organization in 1995.

Rounds of negotiations

The GATT was a series of negotiations, or rounds, that took place from 1947 to 1994. The rounds aimed to reduce tariffs and other trade barriers. The most significant rounds were the Kennedy Round (1962–67), the Tokyo Round (1973–79), and the Uruguay Round (1986–94).

Principles

GATT's main principles were the promotion of free trade, non-discrimination, and transparency in trade. It also provided a process for dispute resolution.

Impact

The impact of GATT was significant in terms of global trade. It helped to reduce tariffs and other trade barriers, which in turn helped to increase global trade.

Criticisms

Despite its achievements, GATT was also criticized. Critics argued that it failed to effectively manage trade and that it was biased in favor of the developed countries.

See also

• World Trade Organization
• International Trade Organization
• United Nations Conference on Trade and Employment

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