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    Seedling School of Law & Governance

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    Divvas Bhagat
    The document discusses the history and establishment of the General Agreement on Tariffs and Trade (GATT). It notes that following World War II, nations sought to establish international economic institutions to reduce economic causes of war. This led to the creation of the IMF, World Bank, and proposed ITO. When the ITO failed, GATT became the agreement governing international trade. Over successive rounds, GATT helped reduce tariffs and shift protectionism to non-tariff barriers. The final Uruguay Round expanded GATT's remit and established the World Trade Organization in 1995 to replace GATT.

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    Seedling School of Law & Governance

    Uploaded by

    Divvas Bhagat
    112 views15 pages
    The document discusses the history and establishment of the General Agreement on Tariffs and Trade (GATT). It notes that following World War II, nations sought to establish international economic institutions to reduce economic causes of war. This led to the creation of the IMF, World Bank, and proposed ITO. When the ITO failed, GATT became the agreement governing international trade. Over successive rounds, GATT helped reduce tariffs and shift protectionism to non-tariff barriers. The final Uruguay Round expanded GATT's remit and established the World Trade Organization in 1995 to replace GATT.

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    GATT

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    The document discusses the history and establishment of the General Agreement on Tariffs and Trade (GATT). It notes that following World War II, nations sought to establish international economic institutions to reduce economic causes of war. This led to the creation of the IMF, World Bank, and proposed ITO. When the ITO failed, GATT became the agreement governing international trade. Over successive rounds, GATT helped reduce tariffs and shift protectionism to non-tariff barriers. The final Uruguay Round expanded GATT's remit and established the World Trade Organization in 1995 to replace GATT.

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    Download as PPT, PDF, TXT or read online from Scribd
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    112 views15 pages

    Seedling School of Law & Governance

    Uploaded by

    Divvas Bhagat
    The document discusses the history and establishment of the General Agreement on Tariffs and Trade (GATT). It notes that following World War II, nations sought to establish international economic institutions to reduce economic causes of war. This led to the creation of the IMF, World Bank, and proposed ITO. When the ITO failed, GATT became the agreement governing international trade. Over successive rounds, GATT helped reduce tariffs and shift protectionism to non-tariff barriers. The final Uruguay Round expanded GATT's remit and established the World Trade Organization in 1995 to replace GATT.

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    of 15

    Seedling School of Law &

    Governance
    • Subject: Economics

    • Project: GATT

    • Submitted to: Indu Mam

    • Submitted by: Sandeep Sharma


    History of General Agreement on
    Tariffs and Trade
     Following World War II, the victor nations
    sought to create institutions that would
    eliminate the causes of war.
     Their principles were to resolve or prevent
    war through the United Nations and to
    eliminate the economic causes of war by
    establishing three international economic
    institutions.
    Bretton Woods System
     The three institutions were:
    • – The International Monetary Fund (IMF)
    • – The World Bank
    • – The International Trade Organization (ITO)
    • The 3 were known as the Bretton Woods, the New
    Hampshire resort were the agreement occurred

     The economic philosophy of these Bretton


    Woods institutions were classical economic
    neoliberalism.
    GATT,1947
     Because the ITO was stillborn the provisional
    agreement for the ITO, the General Agreement
    on Tariffs and Trade (GATT) became the
    agreement and the organization for
    establishing and enforcing, through dispute
    settlement, the international trade rules.
     In 1995 this agreement on trade in goods
    became the World Trade Organization.
    The General Agreement on Tariff
    and Trade (GATT)
    • The U.S. Congress did not object to
    establishment of the World Bank and the IMF
    but refused to agree to the ITO on the grounds
    that it would cede too much sovereignty to an
    international body.
    GATT, 1947
    • The GATT was very successful in lowering
    tariffs, the then existing major barrier to free
    trade.

     The first five rounds of multilateral trade


    negotiation succeeded in lowering tariff
    barriers substantially. This shifted
    protectionism to non tariff barriers. (NTB)
    Principle on which GATT found

    GATT was founded on the principle of
    nondiscrimination. Member nations were bound by
    the treaty's most-favored-nation clause, which
    required members to treat all other contracting parties
    equally. Once a member reduced a tariff for another
    member country, that reduction applied to all member
    countries. However, an escape clause allowed a
    nation to withdraw its tariff reduction if it seriously
    harmed the country's domestic the GATT was signed
    in 1948 in Geneva.
    About GATT
     The HeadQuaters of GATT are situated in Geneva
     GATT was signed by 23 countries in 1947 at Geneva.
     India was one of the founder member of GATT.
     Since 1994, -- 118 countries have been its members.
     Gatt was not an organisation, but a treaty with
    Secreatariat at Geneva producers.
    GATT Rounds
    8 rounds of GATT negotiations were held during its
    existence.
     The first 6 rounds were related to curtailing tariff
    rates from 50 to 12%.
     The 7th round was entirely different from all the
    previous rounds, because, it included a number of
    new subjects for consideration.
     The 8th round is known as Uruguay Round, which
    was the most controversial one.
     The discussion in this round announced WTO (world
    trade organization).
    Uruguay Round
    (Eighth Round)
     GATT members sponsored eight specially organized
    rounds of trade negotiations. The last round of
    negotiations, called the Uruguay Round, began in
    1986 and ended in 1994.
     Eventually cut tariffs overall by about one-third and
    reduce or eliminate other obstacles to trade.
     The 1994 GATT pact also provided for establishment
    of the WTO.
     All of the 128 nations that were contracting parties to
    the 1994 GATT agreement eventually transferred
    membership to the WTO.
    Uruguay Round
    (Eighth Round)
     The Uruguay Round Agreements greatly
    expanded the GATT Agreement on Trade in
    Goods by adding:
    – General Agreement on Trade in Services
    (GATS)
    – Agreement on Trade-Related Aspects of
    Intellectual Property (TRIPS)
    Senate Approves Sweeping Pact to Revise Global Trade Rules
    Los Angeles Times
    December 2, 1994
     Approval of the agreement by the United States is expected to
    spur other nations to act, so that it can go into effect Jan. 1. So
    far, 36 of the 124 nations considered likely to take part have
    given formal approval to the plan, among them Germany,
    Britain, Mexico, Chile, Singapore, Malaysia and Thailand.
    Japan is expected to act on the measure as early as today.

     The measure has been a centerpiece of President Clinton's


    economic program. Administration officials said that it will
    open Europe, Japan and the emerging markets of developing
    nations to ever-more goods and services produced in American
    offices, factories and fields, creating new jobs in the process.
    THE Trade Chiefs
     The Directors-general of GATT and WTO

    • Sir Eric Wyndham-White (UK) 1948-68


    • Olivier Long (Switzerland) 1968-80
    • Arthur Dunkel (Switzerland) 1980-93
    • Peter Sutherland (Ireland) GATT 1993-94; WTO 1995
    • Renato Ruggiero (Italy) 1995-1999
    • Mike Moore (New Zealand) 1999-2002
    • Supachai Panitchpakdi (Thailand) 2002-2005
    • Pascal Lamy (France) 2005–
    GATT Rounds
     1947Geneva45,000 reductions in bilateral tariffs covering 20% of
    world trade.
     1949Annency, France5,000 reductions in bilateral tariffs.
     1951Torquay, England8,700 reductions in bilateral tariffs covering a
    new range of goods.
     1955-56GenevaReductions in bilateral tariffs.
     1960-62Dillon Round Reductions in bilateral tariffs. EEC talks
    begin.
     1964-67Kennedy Round Reductions in bilateral tariffs. Negotiation
    rules established.
     1973-79Tokyo Round Reductions in bilateral tariffs. Procedures on
    dispute resolution, dumping and licensing.
     1986-93Uruguay Round Additional tariff reductions. Stalemate for
    agricultural tariffs.1995WTO established WTO replaces the GATT.
     2001-Doha Round Divergences between developing and developed
    countries. Issues over agricultural subsidies.
    Thank You for Patient Listening

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