The General Agreement on Trades and Tariffs (GATT) was a multilateral treaty created with the primary purpose of promoting and regulating international trade among countries. It was signed on October 30, 1947, and entered into force on January 1, 1948. The GATT served as a framework for negotiations among participating countries for the reduction of trade barriers and the promotion of free trade.
One of the primary objectives of the GATT was to facilitate the growth of international trade by promoting fair and equitable trade practices among participating countries. The agreement aimed to reduce trade barriers such as tariffs, quotas, and subsidies, which were considered to be obstacles to free trade.
The GATT also established rules and regulations to ensure that trade was conducted in a fair and transparent manner. This included provisions for the treatment of developing countries to ensure their participation in the global economy and to protect them from unfair trade practices.
Another important goal of the GATT was to foster economic growth and development among participating countries. The agreement sought to create a level playing field for businesses across the world by removing trade barriers and promoting competition. This, in turn, helped to stimulate economic growth and development, which benefited all participating countries.
Over the years, the GATT underwent several rounds of negotiations, with the most significant being the Uruguay Round, which led to the creation of the World Trade Organization (WTO) in 1995. The WTO took over the functions of the GATT and expanded its scope to cover new areas such as trade in services and intellectual property.
In conclusion, the primary purpose of the General Agreement on Trades and Tariffs (GATT) was to promote and regulate international trade among participating countries. By reducing trade barriers, establishing fair and transparent trade practices and facilitating economic growth and development, the GATT played a significant role in shaping the global economy. Its legacy is evident in the current multilateral trading system, which remains the foundation for the global trade regime.
