General Agreement on Tariffs and Trade (GATT) Definition

The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement that governs international trade between countries. It was signed in 1947 and entered into force on January 1, 1948, and was replaced by the World Trade Organization (WTO) in 1995. The GATT is a legal agreement that aims to reduce trade barriers between member countries and promote free trade.

The main objective of the GATT is to provide a framework for the negotiation and reduction of trade barriers. The agreement requires member countries to reduce tariffs and other trade barriers to promote free trade among all member countries. The GATT also establishes rules for the conduct of international trade, including the treatment of non-tariff barriers such as quotas, import licenses, and other trade restrictions.

The GATT provides a forum for member countries to negotiate and resolve trade disputes. The agreement includes a dispute settlement mechanism that enables countries to settle disputes through mediation or arbitration. The GATT also lays down the rules for the imposition of trade sanctions in case of a breach of the agreement by any member country.

The GATT has played an important role in promoting international trade and economic growth. Since its inception, the GATT has facilitated several rounds of negotiations that have led to significant reductions in tariffs and other trade barriers. The most significant of these rounds was the Uruguay Round, which led to the creation of the WTO.

The GATT has also been criticized for being biased towards developed countries at the expense of developing countries. Critics argue that the agreement has failed to address issues such as agricultural subsidies and unfair trading practices, which have harmed the interests of developing countries.

In conclusion, the General Agreement on Tariffs and Trade (GATT) is a multilateral agreement that aims to promote international trade by reducing trade barriers between member countries. The agreement provides a framework for the negotiation and settlement of trade disputes and has played an important role in promoting economic growth. While the GATT has been criticized for being biased towards developed countries, it remains an important legal instrument for promoting international trade and reducing trade barriers.