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

The summit almost led to a third organization. It would become the very ambitious International Trade Organization (ITU). The 50 countries that started negotiations wanted it to be an agency within the United Nations that creates rules, not only for trade, but also for employment, commodity agreements, trade practices, foreign direct investment and services. The ITU Charter was adopted in March 1948, but the U.S. Congress and legislators in some other countries refused to ratify it. In 1950, the Truman administration declared defeat and ended the ITO. The details of GATT have been optimized in the decades since its creation. The main objective of the continuation of the negotiations was to further reduce tariffs. In the mid-1960s, an anti-dumping agreement was added with the Kennedy Round, while the Tokyo Round improved other aspects of trade in the 70s. The Uruguay Round lasted from 1986 to 1994 and created the World Trade Organization.

Governments give some degree of control to an international agreement The General Agreement on Tariffs and Trade (GATT) was the first multilateral free trade agreement. It first entered into force in 1948 as an agreement between 23 countries and remained in force until 1995, when its membership increased to 128 countries. It has been replaced by the World Trade Organization. Gatt is the foundation of the WTO. The 1947 Agreement itself no longer exists, but its provisions have been incorporated into the GATT 1994 Agreement. This should keep trade agreements running during the creation of the WTO. The GATT 1994 is therefore itself an integral part of the WTO Agreement. Most countries have adopted the most-favoured-nation principle when setting tariffs, which have largely replaced quotas. Tariffs (which are preferable to quotas but still a barrier to trade) have again been steadily reduced in successive rounds of negotiations. At the same time, 15 countries focused on negotiating a simple trade deal.

They agreed to remove trade restrictions affecting trade worth $10 billion, or one-fifth of the global total. A total of 23 countries signed the GATT Agreement on 30 October 1947, paving the way for its entry into force on 30 June 1948. The General Agreement on Tariffs and Trade (GATT), signed by 23 countries on October 30, 1947, was a legal agreement that minimized barriers to international trade by eliminating or reducing quotas, tariffs and subsidies while maintaining important regulations. Gatt has introduced the most-favoured-nation principle into customs agreements between members. The objective of GATT was to eliminate harmful trade protectionism. Trade protectionism likely contributed to the 66% reduction in world trade during the Great Depression. Gatt helped restore the world`s economic health after the devastation of the Depression and World War II. Unlike the ITU Charter, gatt did not require Congressional approval. This is because the GATT was technically an agreement under the provisions of the U.S. Reciprocal Trade Act of 1934. One of the most important achievements of GATT has been trade without discrimination.