Which Best Characterizes The Role Of The General Agreement On Tariffs And Trade (Gatt)

The General Agreement on Tariffs and Trade was a free trade agreement that eliminated tariffs and increased international trade. As the first multilateral free trade agreement, GATT governed an important part of international trade between January 1, 1948 and January 1, 1995. The agreement ended when it was replaced by the more robust World Trade Organization (WTO). One of GATT`s most important achievements has been indiscriminate trade. Any GATT signatory should be treated like any other, known to be the nation`s most privileged principle and entered into the WTO. The practical result was that, once a country had negotiated a tariff reduction with some other countries (usually its major trading partners), this reduction would automatically apply to all GATT signatories. There were escape clauses under which countries could negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. The 1947 agreement itself no longer exists, but its provisions were incorporated into the 1994 GATT agreement. Trade agreements should thus continue to operate during the wto`s implementation. That is why the 1994 GATT is an integral part of the WTO agreement. In addition, countries could restrict trade for national security reasons. These include patent protection, copyright and public morality. This series of meetings and reduced rates would continue, allowing for new GATT provisions in the process.

The average tariff rate rose from about 22% when the GATT was first signed in Geneva in 1947, to about 5% until the end of the 1993 Uruguay Cycle, which also negotiated the creation of the WTO. The General Agreement on Tariffs and Trade (GATT), signed on 30 October 1947 by 23 countries, was a legal agreement aimed at minimizing barriers to international trade by eliminating or reducing quotas. , tariffs and subsidies, while maintaining important rules. The GATT is expected to stimulate economic recovery after the Second World War through the reconstruction and liberalization of world trade. The goal of the GATT was to eliminate harmful trade protectionism. Trade protectionism probably contributed to the 66% reduction in world trade during the Great Depression. The GATT helped restore the world`s economic health after the ravages of depression and World War II. At the same time, 15 countries focused on negotiating a simple trade agreement. They agreed to remove trade restrictions on $10 billion or one-fifth of the world`s trade zone. A total of 23 countries signed the GATT agreement on 30 October 1947, paving the way for its implementation on 30 June 1948. Governments give some degree of control to an international agreement The third provision was added in 1965, which is aimed at developing countries that join the GATT. Developed countries have agreed to eliminate tariffs on imports from developing countries in order to stimulate these economies.

Lower tariffs have also benefited industrialized countries. As THE GATT has attracted middle-class consumers worldwide, the demand for trade with industrialized countries has increased.