General Agreement on Tariffs and Trade (GATT) was a treaty established in 1947 to promote international trade by reducing trade barriers such as tariffs, quotas, and subsidies. The agreement was signed by 23 countries, and it soon grew to a membership of over 100 countries. The GATT became the foundation for the World Trade Organization (WTO), which replaced it in 1995.

GATT countries agreed to lower tariffs and trade barriers in a series of negotiations known as “rounds.” The first round, held in Geneva in 1947, was known as the “Geneva Round” or “Annecy Round.” The seventh and final round, held in Uruguay in 1994, was known as the “Uruguay Round.” These rounds resulted in significant reductions in tariffs, expanded trade in textiles and agriculture, and strengthened intellectual property rights.

The GATT agreement had a significant impact on global trade, leading to the growth of international trade and the globalization of economies. Today, the WTO oversees the continued reduction of trade barriers and the maintenance of free and fair trade among its member countries.

One of the key principles of the GATT was the “most-favored-nation” (MFN) rule. This rule required countries to treat all other member countries equally in terms of tariffs and trade restrictions. This ensured that no country received preferential treatment over another, and it promoted a level playing field for all member countries. However, exceptions to the MFN rule were allowed in certain circumstances, such as regional trade agreements.

Another key principle of the GATT was the principle of national treatment. This required countries to treat foreign products and services the same as domestic ones, once they entered the domestic market. This principle ensured that foreign products and services were not discriminated against by domestic policies or regulations, thereby promoting fair competition in domestic markets.

In conclusion, the GATT was a significant achievement in modern history, as it helped to promote global trade by reducing trade barriers and promoting free and fair competition. The agreement paved the way for the establishment of the WTO, which continues to oversee international trade and promote economic growth among its member countries. The GATT was a testament to the power of international cooperation and the importance of working together to achieve a common goal.