Formed in 1947 in Geneva, Switzerland. Free trade between contracting, signatory countries enacted. Intended to mitigate devastating effects of protectionist measures. One severe example of such was the US Smoot-Hawley tariff. It raised import duties from 39 percent to 53 percent, allegedly to reduce Great Depression impacts. This agreement established a multilateral, rule-based trading system for goods and services trading. Requiring a series of negotiation rounds, it reduced average tariffs of 40 percent on manufactured goods in the industrialized nations to about 5 percent. It also convinced less developed nations to use varied, promised reductions. Applied two non-discriminatory principles: (1) Most favored nation and national treatment, and (2) Reciprocity. Successes were strong reductions in all non-tariff barriers and import quotas. Continued to advocate countervailing duties to stop dumping and to offset effects of subsidies. GATT was replaced by World Trade Organization (WTO) on January 1, 1995, after the culmination of Uruguay Round.
What is GENERAL AGREEMENT ON TARIFF AND TRADE (GATT)?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- Fake News: History, Laws, & Is It Going To Ruin The Election… Again?
- Privacy Laws: Why It Matters, What To Do, & Important FAQs
- Deportation: Human Rights, FAQ, & What To Do
- Flexible Spending Account (FSA): Limits, Expenses & FAQ
- Census 2020: Everything You Need To Know Before You Say No
- What To Expect With An IRA: Traditional, Roth, SEP, & SIMPLE
- Outdated & Weird Laws You Can Still Be Charged With
- 401(K) Types, Loans, Contribution Limits, & Benefits
- Right To Know Law: Everything You Need To Know
- FAQ About The Freedom Of Information Act (FOIA)
- Best Way to Find Someone in Jail for Free
- How Do You Look up License Plate Numbers?
- What Is A Police Welfare Check?
- Best Way to Run a Free Arrest Warrant Check
- Signing a Letter on Someone Else’s Behalf
- Best Way to Write a Professional Letter to a Judge
- How To Find A Name & Address Using A License Plate Number
- How To Find An Inmate’s Release Date
- How to Transfer a Car Title When The Owner Is Deceased
- What Rights Do Convicted Felons Lose?