General Agreement On Trade And Tariffs (Gatt)

However, their main achievement was the adoption of Part IV of the GATT, which freed them from the corresponding reciprocity with developed countries in trade negotiations. In the view of many developing countries, this was a direct consequence of UNCTAD I`s request for a better trade agreement for them. The prosperity of the global economy over the past half century is due in large part to the growth of world trade, partly due to far-sighted officials who created the GATT. They have defined a number of procedures aimed at providing stability to the trading environment and thus facilitating the rapid growth of world trade. In the long term, GATT conference countries have helped to put the global economy on a solid footing and thus improve the livelihoods of hundreds of millions of people around the world. Unlike the ITO charter, the GATT did not need congressional approval. Technically, the GATT was a 1934 agreement, in accordance with the provisions of the U.S. Reciprocal Trade Act. The Uruguay cycle began in 1986.

It was the most ambitious cycle to date that hoped to extend GATT`s jurisdiction to important new areas such as services, capital, intellectual property, textiles and agriculture. 123 countries participated in the cycle. The Uruguay Round was also the first round of multilateral trade negotiations in which developing countries played an active role. [16] The General Agreement on Tariffs and Trade (GATT) was the first multilateral free trade agreement. It first came into force in 1948 as an agreement between 23 countries and remained in force until 1995, when it joined 128 countries. It has been replaced by the World Trade Organization. THE GATT and its successor, the WTO, have succeeded in reducing tariffs. Average tariff levels for large GATT participants were about 22% in 1947, but were 5% after the Uruguay Round of 1999. [4] Experts attribute some of these tariff changes to the GATT and the WTO. [5] [6] [7] One of GATT`s main 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. Following the UK`s vote to leave the European Union, proponents of leaving the European Union proposed that Article 24, paragraph 5B of the treaty could be used to maintain a « stalemate » in trade conditions between the UK and the EU if the UK left the EU without a trade deal. to prevent the introduction of tariffs.