India and WTONavnirman Institute of Management
.Introduction to General Agreement on Trade and Tariffs (GATT).
In 1948, a meeting took place in Bretton Woods, New Hampshire: theInternational Monetary Conference. There, negotiators agreed to create the InternationalMonetary Fund and the World Bank. But they could not agree on an organization to deal withinternational trade. 3 years later, in 1947, 23 nations approved the General Agreement on Tariffsand Trade, or GATT. It was meant to be temporary. Trade negotiations under GATT werecarried out in a series of talks called rounds.
rom GATT to WTO
Dates Name(Round) Outcome1947 Geneva Round 45,000 tariff concessions representing half of world trade.1949 Annecy Round Modest tariff reductions.1950-51 Torquay Round 25% tariff reductions in relation to 1948 level1955-56 Geneva Round Modest tariff reductions.1961-62 Dillon Round Modest tariff reductions.1963-67 Kennedy Round Average tariff reductions of 35% of industrial production, onlymodest reduction for agriculture product, anti- dumping codes.1973-79 Tokyo Round Average tariff reductions 34% of industrial production. Non-tariff trade barrier code.1986-94 Uruguay Round Tariff, non-tariff measures, rules, service, intellectual property, disputes settlement , creation of WTO ,etc.
The primary objective of GATT was to expand international trade by liberalising trade to bringeconomic prosperity. GATT mentions the fallowing important objectives1.
Raising standards of living2.
Ensuring full employment a large and steadily growing volume of real income andeffective demand3.
Developing the full use of the resources of the world4.
Expanding the production and exchange of goods.