General

Agreement
on Tariffs and
(GATT)
Trade

Group Members :

Kalyani Zade
Kanchan
Godhani
Samiksha
Hunter

What is GATT
It was negotiated during the united nations conference on trade and em
ployment and was the outcome of the failure of negotiating governmen
ts to create the
international trade organization (ITO).
It is a multinational treaty among the member countries that lays down c
ertain
Agreed rules for conducting international trade.
GATT was signed by 23 nations on October 30, 1947 and took effect on
January 1, 1948.
It lasted until the signature by 123 nations in Marrakesh on April 14, 19
94 , After which the World Trade Organization (WTO) was established
on January 1, 1995.

Three Phases Of GATT

The first phase, from 1947 until the torquayround, largely concern
ed with
which all commodities would be covered by the agreement and freez
ing
existing tariff levels.
The second phase, encompassing three rounds, from 1959 to 197
9, focused on reducing tariffs.
The third phase, consisting only of the Uruguay round from 1986 to
1994,
extended the agreement fully to new areas such as intellectual proper

OBJECTIVES
The primary objectives of GATT are as follows:1) Raising standards of living.
2) Ensuring full employment and large and steady growin
g volume of real income and effective demand.
3) Developing full use of resources of the world.
4) Expansion of production and international trade.

PRINCIPLES
GATT has certain conventions and general principles governing intern
ational
trade among countries that follows the GATT agreement:Any proposed change in the tariff or any type of commercial policy of
a
member country should not be undertaken without the consultation
with the
other parties to the agreement.
The countries that adhere to get work towards the reduction of tariff
and

For the realization of the objective GATT adopt

ed the
following:1) NON DISCRIMINATION
2) PROTECTION ONLY THROUGH TARIFF
3) CONSULTATION

FUNCTIONS
Most favored nation clause
Tariff and non-tariff measures
Safeguards
Complaints and waivers
Settlement of disputes

Why GATT Changed to WTO

The GATT was a set of rules, a multilateral agreement, with no institu
tional
foundation, only a small associated secretariat, which had its origins i
n the
attempt to establish an International Trade Organization in the 1940s.
The WTO is a permanent institution with its own secretariat.
The GATT was applied on a "provisional basis" even if, after more tha
n forty
years, governments chose to treat it as a permanent commitment.
The WTO commitments are full and permanent.

The GATT rules applied to trade in merchandise goods. I

n
addition to goods, the WTO covers trade in services and t
rade
related aspects of intellectual property.
The WTO dispute settlement system is faster, more auto
matic,
and thus much less susceptible to blockages, than the old
GATT
system
Last but not the least, with the emergence of more and
more

THANK YOU!!