General Agreement on Tariffs and Trade (GATT) is a multilateral agreement that emerged in the aftermath of World War II with the objectives of promoting international trade by reducing obstacles and providing a fair framework for trade. It was signed in 1947 by 23 countries and became effective in 1948. The agreement was, in essence, a mutual understanding between nations to liberalize and regulate trade, reduce tariffs, and eliminate barriers to trade.
The countries that signed the agreement recognized that fair and open trade was essential to economic growth and development, and they committed to working together to achieve this objective. GATT established rules governing international trade and created a forum for negotiations among the member countries to settle disputes and to address issues related to trade.
During the first few decades of its existence, GATT helped to coordinate significant reductions in tariffs among its members, which led to an increase in international trade and economic growth. In 1986, the Uruguay Round of GATT negotiations began, and after seven years of discussions, the World Trade Organization (WTO) was established in 1995.
The WTO is the successor to GATT and is responsible for the regulation of international trade. It is a forum for negotiating trade agreements, monitoring compliance with those agreements, and settling disputes that arise between member countries. Currently, 164 countries are members of the WTO, accounting for almost 98 percent of the world’s trade.
The history of GATT has been marked by numerous successes and challenges. The reduction of tariffs, the opening of markets, and the growth of trade have all contributed to global economic development and improved living standards. However, trade tensions, protectionism, and economic nationalism have also emerged as significant challenges to GATT`s vision of free and open trade.
In conclusion, the General Agreement on Tariffs and Trade history is a story of commitment by nations to work together to promote free and open trade. It has facilitated the growth of international trade, economic development, and improved living standards. Nevertheless, challenges still exist, and continued efforts are required to ensure that GATT`s vision is maintained and enhanced.