The Role Of General Agreement On Tariffs And Trade

The derogations referred to in Article XX of the GATT shall be permitted as long as the measures resulting therefrom are not unjustified or arbitrary. This implies that the country has no other means to achieve these objectives that would avoid restrictive business practices. In this context, the general principles of international law and other international conventions ratified by members may also be taken into account when interpreting the extension of a derogation (US – Shrimp, WTAB/R, 1998, paragraph 35). See also Vienna Convention on the Law of Treaties Article 31(3.c). The prosperity of the world economy over the past half century is due in large part to the growth of world trade, which is partly the result of far-sighted officials who launched gatt. They defined a number of procedures that would bring stability to the trading environment, thus facilitating the rapid growth of world trade. In the long term, the initial GATT conferences helped lay a solid foundation for the global economy, improving the livelihoods of hundreds of millions of people around the world. The GATT had three main provisions. The most important requirement was that each member should grant any other member most-favoured-nation status. All members must be treated on the same point when it comes to tariffs. He excluded special tariffs among members of the British Commonwealth and the customs union.

It has authorised customs duties if its removal would cause serious injury to domestic producers. At the end of World War II, there was a consensus that tariffs were too high around the world and that tariff reductions could boost international trade and return the world to a prosperous economy in peacetime. In the years following the Great Depression and World War II, there was a global advance to build institutions that would connect nations around the world. The United Nations was officially established in 1945. The World Bank, which helps the world`s poorest people, and the International Monetary Fund, which deals with international financial transactions, were both established in 1946. The third organization envisaged should be an international trade organization that should manage international trade. The United Nations could not give its consent. Instead, the General Agreement on Tariffs and Trade (GATT) was created in 1947 to create a forum in which nations could come together to negotiate the removal of tariffs and other barriers to trade. In 1995, GATT was transformed into the World Trade Organization (WTO). Explaining the role of Asia-Pacific Economic Cooperation (APEC) in ensuring free trade plays governments that give some degree of control to an international agreement The GATT continues to live as the basis of the WTO. The 1947 Agreement itself no longer exists, but its provisions have been incorporated into the GATT 1994 Agreement. This should make trade agreements work during the creation of the WTO.

Therefore, the GATT itself became part of the WTO agreement in 1994. Gatt and its successor, the WTO, have succeeded in reducing tariffs. Average tariffs for the main GATT participants were about 22% in 1947 and 5% after the Uruguay Round in 1999. [4] Experts attribute some of these customs changes to GATT and the WTO. [5] [6] [7] The third element of the GATT structure, which was later integrated into the WTO, is an institutional presence maintained by the activities of its secretariat. It is important that the secretariat monitor to a large extent the implementation of dispute settlement bodies that effectively define the enforcement mechanism of the rules of the trading system within the WTO system. These dispute settlement bodies have greatly accelerated their intervention in recent years and have culminated in decisions taken in a number of key areas, including recently the banana trade (see the WTO Director-General`s statement to the WTO General Council, 8 March 1999). . . .