The Usual Treaty on Tariffs and Commerce (GATT) refers to an international Treaty on Commerce liberalization signed by 23 countries in 1947. The Microcosm Commerce Coordination (WTO) replaced GATT in 1995.
History
After the extreme of Macrocosm Hostility II, the USA and Allied forces worked to enlargement international Commerce and chief flow. As a result, 23 countries created GATT in Geneva, Switzerland, in 1947. The International Monetary Fund and the International Bank for Reconstruction and Development also were established in this era.
Features
GATT reduced trade barriers and tariffs and required that each participating nation treat all participating nations equally. This principle of equality is called the "most favored nation" principle. GATT also abolished most quantitative import and export quotas. The agreement lowered trade barriers on industrial products, according to Iowa State University, and also reduced nontariff barriers such as anti-dumping measures. GATT did not, however, liberalize agricultural trade, according to the university.
Moreover, GATT conducted several trade agreements among its members.
