GATT Full Form – General Agreement on Tariffs and Trade

The GATT Full Form is General Agreement on Tariffs and Trade. It is a global trade agreement. It was made to help countries trade with each other. It started after World War II. Countries wanted to grow their economies. So, they decided to reduce taxes on imports and exports. This helped them buy and sell goods easily across borders.

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What is GATT?

The GATT is a group of rules. These rules help countries trade smoothly. Countries that joined GATT followed the same rules. The GATT Full Form tells us that it is about tariffs (import taxes) and trade. By following these rules, countries were fair to each other in trade.

When was GATT Started?

The GATT Full Form was officially signed in 1947. The agreement was signed in Geneva, Switzerland. At first, 23 countries joined. Later, more than 100 countries became members. This showed that many nations trusted GATT to manage world trade.

Why was GATT Created?

Before GATT, there were many trade problems. Countries were putting very high taxes on imported goods. Some countries even stopped trade to protect their own industries. This made trade slow and unfair. To solve this, countries made the GATT. The goal was to make trade simple, fair, and open.

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Main Goals of GATT

The GATT Full Form shows the main goals:

• Lower taxes on imported goods (tariffs)
• Promote free trade between countries
• Solve trade disputes peacefully
• Avoid unfair trade practices

These goals helped the world grow together.

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How Did GATT Work?

The GATT worked through trade rounds. In each round, countries talked about how to improve trade. They discussed reducing tariffs and fixing trade barriers. These rounds helped build trust. Some popular trade rounds were:

Geneva Round (1947): This was the first-ever GATT trade round. It aimed to reduce customs duties and improve global trade after World War II. 23 countries took part and created the base rules of GATT.

Annecy Round (1949): Held in France, this round focused on further reducing tariffs. Thirteen countries participated and agreed to cut more import taxes, making trade even easier.

Torquay Round (1951): Named after a town in England, this round continued the work of reducing tariffs. More than 8,000 tariff concessions were made, helping global trade grow faster.

Dillon Round (1960-61): Named after U.S. Under Secretary of State Douglas Dillon. It introduced the idea of the European Economic Community (EEC) into GATT talks. It also led to tariff reductions and better cooperation.

Kennedy Round (1964-67): This round focused on cutting tariffs and dealing with anti-dumping rules. It was one of the most successful early rounds and helped modernize trade laws.

Tokyo Round (1973-79): This round expanded GATT’s scope. It started looking at non-tariff barriers, like import licenses and product standards. It also set new rules for fair trading practices.

Uruguay Round (1986-94): The longest and most important round. It led to big changes in trade. For the first time, services, agriculture, and intellectual property were discussed. This round ended with the creation of the World Trade Organization (WTO) in 1995.

Each round made trade rules better. The Uruguay Round was the most important. It later led to the creation of the World Trade Organization (WTO).

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Principles of GATT

The GATT Full Form is more than just words. It follows some strong principles. These include:

1. Most Favoured Nation (MFN): Every country must treat other countries the same. If one country gets a lower tax rate, others must get it too.
2. National Treatment: Imported goods must be treated like local goods after they enter the country.
3. Transparency: Countries must share their trade rules clearly.
4. Fair Competition: No cheating or hidden taxes allowed.
5. Dispute Resolution: If countries have a fight about trade, GATT helps them solve it peacefully.

GATT and Developing Countries

The GATT Full Form helped not just rich countries. It also helped developing countries. These countries were given more time to follow rules. They got special treatment. This helped them grow faster and be part of world trade.

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Achievements of GATT

Here are some big achievements of GATT:

• Trade between countries grew
• Tariffs became lower
• Trade became fair and clear
• Many disputes were solved
• New rules were made for smooth trade

These benefits made the world more connected and cooperative.

Limitations of GATT

Even though the GATT Full Form stood for a fair agreement, it had some problems:

• It did not cover all types of trade like services or technology
• Some countries found ways to avoid rules
• There was no strong punishment for breaking rules
• Dispute settlement was slow

Because of these problems, there was a need for change.

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GATT to WTO

In 1995, the World Trade Organization (WTO) was formed. The GATT Full Form changed its form. WTO included the old GATT rules and added more. The WTO became stronger. It covered trade in services, goods, and property rights.

GATT is now part of WTO. It is known as GATT 1994. This new form is more complete. WTO also has a better system to solve trade disputes.

Why is GATT Still Important?

Even today, the GATT Full Form matters. It created the base for global trade. Without GATT, countries might have continued fighting over trade. It gave us the path to trade fairly. It also showed the power of working together.

Simple Example of GATT in Action

Let us understand GATT with a simple example:

Imagine Country A grows apples. Country B makes phones. Earlier, Country B had a high tax on apples from Country A. So, apples were very expensive there. After GATT, both countries agreed to reduce taxes. Now, Country B can enjoy cheap apples. Country A can buy phones easily from Country B. Both win.

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GATT vs WTO

Here is a simple table to understand the difference: