The history of General Agreement on Tariffs and Trade (GATT) dates back to the aftermath of World War II when many countries around the world were struggling with economic recession and instability. In 1947, representatives from 23 countries gathered in Geneva to sign the GATT, an international agreement that aimed to reduce tariffs and promote free trade among member nations.
GATT was initially signed for a period of eight years and was focussed on reducing tariffs and other trade barriers. The agreement was renewed several times and was eventually replaced by the World Trade Organization (WTO) in 1995.
The GATT aimed to promote economic growth and development by reducing trade barriers and encouraging international trade. Trade barriers included tariffs, quotas, and other regulations that made it difficult for countries to trade with each other. By reducing these barriers, the GATT hoped to create a more open and competitive global economy.
In addition to reducing trade barriers, the GATT also provided a framework for resolving disputes between member countries. The agreement established a set of rules that governed international trade and provided mechanisms for resolving disputes when they arose.
Over the years, the GATT evolved to address new challenges and issues. In the 1960s, for example, the agreement was expanded to include non-tariff barriers to trade, such as subsidies and technical regulations. In the 1980s, the agreement was expanded to include services and intellectual property rights.
The GATT faced several challenges over the years, including disagreements among member countries and resistance from industries that were protected by tariffs and other trade barriers. Some critics also argued that the GATT did not do enough to protect workers and the environment in member countries.
Despite these challenges, the GATT was successful in reducing trade barriers and promoting economic growth and development. The agreement paved the way for the creation of the WTO, which continues to promote free trade among member countries today.
In conclusion, the General Agreement on Tariffs and Trade (GATT) played a critical role in promoting free trade and reducing trade barriers among member countries. The agreement established a set of rules that governed international trade and provided mechanisms for resolving disputes. The GATT was eventually replaced by the World Trade Organization (WTO) in 1995, which continues to promote free trade among member countries today.