General agreement on trade and tariffs.
The General Agreement on Tariffs and Trade (GATT) was a pivotal international trade agreement that played a crucial role in shaping the post-World War II global economy. Here’s a breakdown of its key aspects:
Purpose and Jurisdiction:
* Objective:
* GATT’s primary goal was to liberalize international trade by reducing or eliminating trade barriers, such as tariffs and quotas.
* It aimed to foster economic recovery after World War II and promote global economic cooperation.
* Jurisdiction:
* GATT focused primarily on trade in goods.
* It established a set of rules and principles that signatory countries were expected to adhere to in their trade practices.
* It also provided a framework for resolving trade disputes among member nations.
Effect:
* Tariff Reduction:
* GATT was highly successful in reducing average tariff levels among member countries through a series of negotiating “rounds.”
* This led to a significant increase in international trade.
* Trade Liberalization:
* By reducing trade barriers, GATT facilitated the growth of global trade and economic interdependence.
* Foundation for the WTO:
* GATT laid the groundwork for the creation of the World Trade Organization (WTO), which succeeded it in 1995.
Membership:
* Initial Signatories:
* GATT was initially signed by 23 countries in 1947.
* Growth:
* Over time, GATT’s membership expanded significantly, reflecting the increasing importance of international trade.
* By the time it was replaced by the WTO it had over 125 member nations.
Success and Legacy:
* Success:
* GATT is widely regarded as a successful agreement that contributed significantly to the growth of the global economy.
* Transition to the WTO:
* GATT no longer exists as an independent organization.
* It was replaced by the WTO on January 1, 1995.
* The WTO built upon the principles of GATT and expanded its scope to include trade in services and intellectual property.
* Therefore, GATT’s principles live on within the WTO.
In summary, GATT was a crucial stepping stone in the evolution of international trade, paving the way for the modern global trading system.
World Rules based order…
America’s first editorial opinion…
We believe that individual sovereignty of Nations is very important but not as important as some people bewit the end of the world and that some sort of non-benign entity is behind world-based order and its rules.
The paranoia that might overtake the reasoning of the many. To quote a former US president and somebody intimately involved in the rules-based order for a peaceful world after World war II, President Roosevelt ” We have nothing to fear but fear itself”
Govern ourselves accordingly.
Kevin Griffiths
percypaschal
The Proprietor Review 