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General Agreement on Tariffs and Trade

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The General Agreement on Tariffs and Trade (GATT) was an international agreement to reduce tariffs and other barriers to trade. Around 1990 it was described as the main institution overseeing world trade.[1]

Origins

In the 1940s, several international economic arrangements were set up, including the Bretton Woods system of fixed exchange rates.[2] The Bretton Woods conference of 1944 set up the International Monetary Fund and the World Bank, but it did not deal with trade.[1] In 1946 the United States published a draft charter for an International Trade Organization, but this plan failed.[1]

Instead, countries negotiated an agreement to lower tariffs, which was completed by October 1947.[1] It came into force through a Protocol of Provisional Application, applied by twenty-three nations.[1] Its opening words described agreements that were reciprocal and to the advantage of all, aimed at a large reduction of tariffs and other trade barriers.[1]

Principles

One principle of the GATT was multilateralism: trade rules applied to all members without discrimination.[3] Countries opened their markets by agreeing to reduce barriers, with each side making balanced concessions.[3]

Rounds of talks

The GATT worked through rounds of negotiations. Under the GATT, tariffs in the OECD countries fell to very low levels.[4] The Tokyo Round then began to tackle non-tariff barriers.[4] The Uruguay Round aimed to extend GATT rules to new sectors.[5] According to Bhagwati, the number of contracting parties (members) of the GATT rose from 86 to 96 in the years after 1982.[6] The final stage of the Uruguay Round was set for Brussels in December 1990.[7]

See also


References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Bhagwati, Jagdish N. (2014). The World Trading System at Risk. Princeton University Press. p. 3. ISBN 9781400861590.
  2. ↑ Dullien, Sebastian; Goodwin, Neva; Harris, Jonathan M.; Nelson, Julie A.; Roach, Brian; Torras, Mariano (2018). Macroeconomics in Context: A European Perspective. Routledge. p. 486. ISBN 9781138185180.
  3. ↑ 3.0 3.1 Bhagwati, Jagdish N. (2014). The World Trading System at Risk. Princeton University Press. p. 4. ISBN 9781400861590.
  4. ↑ 4.0 4.1 Bhagwati, Jagdish N. (2014). The World Trading System at Risk. Princeton University Press. p. 5. ISBN 9781400861590.
  5. ↑ Bhagwati, Jagdish N. (2014). The World Trading System at Risk. Princeton University Press. p. 6. ISBN 9781400861590.
  6. ↑ Bhagwati, Jagdish N. (2014). The World Trading System at Risk. Princeton University Press. p. 7. ISBN 9781400861590.
  7. ↑ Bhagwati, Jagdish N. (2014). The World Trading System at Risk. Princeton University Press. p. 10. ISBN 9781400861590.
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