16 / 01 / 2022

A General Agreement on Tariff and Trade Gatt

However, during the first negotiations on a comprehensive international trade organization, it became clear that the negotiations would take some time, and a group of states decided to negotiate a separate parallel agreement of limited scope that would generate early gains for states through trade liberalization by focusing on the removal of state trade barriers in certain tariffs. Hence the negotiation of a general agreement on tariffs and trade, which would essentially cover one of the chapters of the ITO and could be integrated into the ITO once it has been concluded. Unlike the ITO Charter, gatt did not require Congressional approval. This is because the GATT was technically an agreement under the provisions of the U.S. Reciprocal Trade Act of 1934. These rules, which concern what constitutes a customs union or a free trade area, and whether they are in accordance with gatt, have proved notoriously difficult and, as a result, gatt has never exercised real control over preferential economic arrangements. The most important development in the field of customs unions during the GATT period was the establishment of the European Economic Community (“EEC”). There has been close cooperation between the GATT Contracting Parties and the EEC negotiators and, finally, no objections have been raised against the EEC under Article XXIV. At the time of the Dillon Round, 1959-1962, the EEC was a reality in international trade negotiations. Although it never became a member of the GATT, the European Communities, like the EEC had become, was an original member of the WTO. The Uruguay Round Agreement on Agriculture remains the largest agreement on agricultural trade liberalization in the history of trade negotiations. The objective of the agreement was to improve market access for agricultural products, reduce domestic support to agriculture in the form of price-distorting subsidies and quotas, eliminate export subsidies for agricultural products over time and harmonise sanitary and phytosanitary measures between Member States as much as possible.

First, the right to make representations to another party and to address the PARTIES applied, both if the other party had allegedly violated the terms of the Agreement and if that Party had taken measures that did not violate the terms of the Agreement, which is referred to as “non-infringement or infringement”. This was a response to one of the negotiators` main concerns that tariff concessions could be undermined by measures taken by a government that were not contrary to the agreement but that effectively removed the benefit that another party expected from an agreed tariff concession, for example by introducing a tariff classification in which the products of one of the Contracting Parties outside the beneficiaries of the concession Products were included. GATT was founded in 1948 to regulate world trade. It was created to stimulate economic recovery after World War II by reducing or eliminating tariffs, quotas, and subsidies. In December 1993, after seven years of negotiations, GATT reached an agreement between 117 countries, including the United States. This round took place in Uruguay and was therefore called the Uruguay Round. The Final Act, which embodies the outcome of the Uruguay Round of multilateral trade negotiations, was the agreement reached in that Round and was signed in April 1994. With this agreement, the World Trade Organization (WTO) was created.

The WTO is the body responsible for implementing the agreement, and it has also started the current round in Doha. To join the WTO now, a nation must apply to become a member. The WTO currently has 164 members. The General Agreement on Tariffs and Trade (GATT), which was concluded on 30 September. Signed by 23 countries in October 1947, it was a legal agreement that minimized barriers to international trade by eliminating or reducing quotas, tariffs and subsidies while maintaining significant regulation. Although GATT is a legal agreement, it acts as an organization. Eight rounds of negotiations have been completed and the current round, the Doha Development Round, began in 2001 and is still ongoing. The objective of GATT was to eliminate harmful trade protectionism.

Trade protectionism likely contributed to a 66% decline in world trade during the Great Depression. Gatt helped restore the world`s economic health after the devastation of the Depression and World War II. The GATT preamble states that the agreement was aimed at “the substantial reduction of tariffs and other barriers to trade and the elimination of discriminatory treatment in international trade”. The central essence of these objectives is to be found in the first three articles of the GATT. The fundamental principle of non-discrimination, expressed in Article I as “general most-favoured-nation (MFN) treatment”, is as follows: the fourth round returned to Geneva in 1955 and lasted until May 1956. Twenty-six countries participated. Tariffs of $2.5 billion have been eliminated or reduced. In addition to facilitating applied tariff reductions, gatt`s early contribution to trade liberalization includes “the immobilization of negotiated tariff reductions for a longer period (which became more permanent in 1955), the definition of the universality of non-discrimination through most-favoured-nation (MFN) treatment, and the status of national treatment, ensuring greater transparency of trade policy measures and the creation of a forum for future negotiations.

and for the peaceful settlement of bilateral disputes. All these elements have contributed to the rationalization of trade policy and the elimination of trade barriers and political uncertainty. [4] The way in which disputes have been dealt with under gatt has shifted from a Presidency ruling on a dispute relating to the establishment of a working group to examine the matter and advise the CONTRACTING PARTIES to a more formal system that would include a three-member “panel”. The panel should investigate the matter, try to reach agreement between the parties to the dispute and finally advise the CONTRACTING PARTIES on the existence of cancellation or deterioration and make a recommendation for the settlement of the dispute. GATT panels would receive written comments from the parties, hold two meetings with them, submit an interim report to the parties for comments, and then submit a final report. This procedure, with some variations, was included in the dispute settlement procedure adopted in the WTO Dispute Settlement Agreement, which is now the basis for WTO dispute settlement. GATT panel rulings are often used by WTO panels in the interpretation of WTO agreements. The most important round of GATT negotiations was the Uruguay Round, which began in September 1986. It was concluded on 15 April 1994 after almost eight years of negotiations and entered into force on 1 January 1995. The resulting comprehensive document contained both important revisions to the GATT as it existed after the previous seven rounds of negotiations and a wide range of other agreements on two types of issues: (1) issues that were not previously covered by gatt regular rules, such as trade-related investment measures, trade in services, intellectual property rights and agriculture, textiles and clothing; and (2) Issues that have been incompletely addressed in previous negotiations, such as rules of origin, dumping, subsidies, safeguard measures and dispute settlement procedures. .