What Was The Primary Purpose Of The General Agreement On Trades And Tariffs (Gatt)

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. The Uruguay Round of multilateral trade negotiations on the General Agreement on Tariffs and Trade (GATT) were concluded in 1994 after 7.5 years of negotiations with the signing of the Final Act on 15 April 1994 in Marrakesh, Morocco. This became known as the « GATT 1994 » and led to the creation of the World Trade Organization (WTO) (WTO, 2013) on January 1, 1995. Among the agreements incorporated into the WTO Treaty is the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement), which establishes the basic rules for the protection of human, animal and plant health in international trade (WTO, 1995). NAFTA is an agreement signed by Canada, Mexico and the United States that creates a trilateral trading bloc in North America. Following the UK`s vote to leave the European Union, supporters of leaving the EU suggested that Article 24(5B) of the treaty could be used to maintain a « status quo » in trade conditions between the UK and the EU if the UK left the EU without a trade deal, thus preventing the imposition of tariffs.

According to proponents of this approach, it could be used to implement an interim agreement until a final agreement of up to ten years is negotiated. [25] The GATT and its successor, the WTO, have succeeded in reducing tariffs. Average tariffs for the main GATT participants were about 22 per cent in 1947 and 5 per cent after the Uruguay Round in 1999. [4] Experts attribute some of these tariff changes to GATT and the WTO. [5] [6] [7] The GATT has organized a total of eight rounds in which countries have traded tariff concessions and reduced tariffs. Since 1995, GATT has been replaced by the World Trade Organization (WTO), a multilateral body on the same level as the International Monetary Fund and the World Bank. This body aims to deepen the process of liberalization of trade between nations so that it can contribute to a greater extent to stimulating global economic growth. Its objectives include the liberalization of trade in agricultural products, the elimination of protectionist measures other than tariffs and quotas, and the strengthening of mechanisms for the settlement of trade disputes between nations. .