GATT Flashcards
(12 cards)
What is GATT?
GATT (General Agreement on Tariffs and Trade) is an international agreement aimed at facilitating world trade by reducing tariff and non-tariff barriers among its member countries.
When was GATT established?
GATT was established on October 30, 1947, in Geneva, Switzerland.
How many member countries did GATT initially have?
GATT initially had 23 member countries.
What are the main objectives of GATT?
- To enhance international trade by reducing tariffs and other barriers.
- To promote global economic stability by reducing government intervention in international trade.
- To open markets fairly for all countries to compete under clear and balanced rules.
- To resolve trade disputes through a platform that allows member countries to address trade issues without further conflict.
What is the structure of GATT?
The structure of GATT consists of several negotiation rounds where member countries discuss reducing trade barriers.
What was the first round of GATT negotiations?
The first round of GATT negotiations began in 1947.
What was the last round of GATT negotiations?
The last round of GATT negotiations was the Uruguay Round, which took place from 1986 to 1994.
What were the successes of GATT?
- Significant increase in international trade after tariff reductions, especially post-World War II.
- Nearly 50% reduction in tariffs in international trade.
- Establishment of the World Trade Organization (WTO) in 1995 as a more formal and broader successor to GATT.
What major change occurred during the Uruguay Round?
The Uruguay Round resulted in significant changes, including the establishment of the WTO.
What are the benefits of GATT?
- More open trade with lower tariffs and equal treatment in global markets.
- Economic stability by reducing protectionist policies that disrupt international trade.
- Peaceful dispute resolution through the existing GATT system.
What are the shortcomings of GATT?
- Non-tariff issues remain a significant challenge as GATT did not focus much on non-tariff trade barriers.
- Lack of regulations for other sectors such as services and investments.
- Difficulty for developing countries to benefit from GATT agreements due to the dominance of developed countries in trade policies.
What is the conclusion about GATT?
GATT played a crucial role in creating a more open world trading system post-World War II. Although GATT successfully reduced trade barriers, it was ultimately replaced by the WTO, which has a broader scope and better capabilities to regulate modern trade sectors.
