General Agreement on Tariffs and Trade Functioned as the Precursor to the World Trade Organisation
2023年9月29日
General Agreement on Tariffs and Trade (GATT) was a landmark global trade agreement that functioned as the precursor to the World Trade Organisation (WTO). GATT came into being after the Second World War when the world was seeking ways to rebuild international trade relations that had been severely hampered by protectionist measures and trade barriers. In this article, we will delve deeper into the history and functioning of GATT as the predecessor to the WTO.
The Origins of GATT
GATT was founded in 1947 through an agreement signed by 23 countries. The aim of GATT was to promote free and fair trade by reducing tariffs, quotas, and other trade barriers between member countries. It was an effort to create a level playing field for all nations by encouraging fair competition in the global market. Over time, the membership of GATT grew to 128 countries.
The Functions of GATT
One of the primary functions of GATT was to negotiate and administer trade agreements between member countries. GATT focused on reducing tariffs and increasing market access to goods and services. It also helped to resolve trade disputes among member nations. GATT provided an important platform for dialogue and cooperation among nations by promoting fair trade policies.
The Evolution of GATT into WTO
Although GATT was successful in promoting global trade, it was not designed to handle the complexities of the modern global trading system. The changing global economic landscape called for the formation of an institution that could handle trade-related issues in a more comprehensive manner. In 1995, GATT was replaced by the World Trade Organisation (WTO). The WTO built on the achievements of GATT but expanded its scope to include services, intellectual property, and investment. The creation of WTO marked a new chapter in the history of global trade and created an institution that could better address the complex issues of modern trade.
Conclusion
GATT`s success is evident in its contribution to the growth of global trade and its role in promoting fair competition among nations. Its evolution into the WTO reflects the changing needs of the global economy and marks a more comprehensive approach to global trade. The GATT paved the way for the formation of an international institution that could better handle the complexities of the global trading system. Today, the WTO continues to work towards creating a fair, stable, and predictable trading system that benefits all member states.