General Agreement on Tariffs and Trade (GATT) Purpose: An Overview

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement designed to promote international trade by removing barriers to trade among participating countries. It was in force from 1948 until 1995 when it was replaced by the World Trade Organization (WTO).

The purpose of GATT was to eliminate tariffs and other trade barriers among the signatory countries. This was accomplished through a series of negotiations where participating countries agreed to lower their tariffs and other trade barriers in exchange for similar concessions from other countries.

GATT was designed to promote free trade among its members, which it did successfully for more than four decades. During this time, international trade expanded rapidly, and many countries benefited from increased access to overseas markets.

The primary objectives of GATT were to:

1. Promote free trade: GATT aimed to eliminate trade barriers such as tariffs, quotas, and other restrictions on trade, to create a level playing field for all participating countries.

2. Encourage fair trade practices: GATT included rules and regulations that aimed to ensure that participating countries followed fair trade practices, such as not engaging in dumping or subsidizing their industries.

3. Facilitate negotiations: GATT provided a forum where participating countries could negotiate trade agreements and resolve trade disputes.

4. Promote economic development: GATT aimed to promote economic development by increasing access to international markets and encouraging the transfer of technology and expertise between countries.

GATT paved the way for the creation of the World Trade Organization (WTO), which was established in 1995. The WTO builds upon the foundation laid by GATT, but it has a broader mandate to promote international trade and economic development.

In conclusion, the primary purpose of GATT was to promote international trade by removing barriers to trade among participating countries. Through negotiations, GATT helped to create a more level playing field for international trade and encouraged fair trade practices. Its legacy continues today with the WTO, which has a broader mandate to promote economic development and international trade.