The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement that was established in 1947. Its primary objective was to create a forum for member countries to negotiate and reduce tariffs and other trade barriers in order to promote international trade and economic growth.
GATT’s primary goal was to reduce tariffs, which are taxes on imports and exports, and other trade restrictions such as quotas and subsidies. This reduction in trade barriers was intended to increase the flow of goods and services between countries, which would ultimately increase economic growth and create jobs.
The agreement also aimed to create a rules-based international trading system, which would provide predictability and stability for businesses engaged in international trade. By establishing clear rules and guidelines for trade, the GATT aimed to reduce uncertainty and provide a stable environment for businesses to invest and trade across borders.
GATT played a critical role in the post-World War II economic recovery and rebuilding efforts. By promoting and facilitating international trade, the agreement helped countries to access new markets and sources of supply. This, in turn, allowed countries to diversify their economies and reduce their reliance on domestic production.
Over time, GATT evolved and expanded its scope to cover an increasing range of trade-related issues. It was succeeded by the World Trade Organization (WTO) in 1995, which now serves as the primary forum for negotiating and implementing international trade agreements.
In summary, the primary purpose of the General Agreement on Tariffs and Trade was to promote international trade and economic growth by reducing trade barriers and establishing clear rules for trade. The agreement played a crucial role in the post-World War II economic recovery and helped to establish a rules-based international trading system that continues to serve as the foundation of global trade today.