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What Was The General Agreement Of Tariffs And Trade

In addition, countries could restrict trade for national security reasons. These include patent protection, copyright and public morality. In 1947, the United Nations negotiated the general agreement on tariffs and trade. This contract has created a body to verify and resolve trade disputes between its members. Members continue to update the underlying contract through a series of “rounds” of negotiations. The prosperity of the global economy over the past half century is due in large part to the growth of world trade, partly due to far-sighted officials who created the GATT. They have defined a number of procedures aimed at providing stability to the trading environment and thus facilitating the rapid growth of world trade. In the long term, GATT conference countries have helped to put the global economy on a solid footing and thus improve the livelihoods of hundreds of millions of people around the world. One of GATT`s most important achievements has been indiscriminate trade. Any GATT signatory should be treated like any other, known to be the nation`s most privileged principle and entered into the WTO.

The practical result was that, once a country had negotiated a tariff reduction with some other countries (usually its major trading partners), this reduction would automatically apply to all GATT signatories. There were leakage clauses allowing countries to negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. Unlike the ITO charter, the GATT did not need congressional approval. Technically, the GATT was a 1934 agreement, in accordance with the provisions of the U.S. Reciprocal Trade Act. In May 1963, ministers agreed on three negotiating objectives: average tariff rates for large GATT participants were about 22% in 1947. [4] As a result of the first rounds of negotiations, tariffs at the heart of the GATT of the United States, the United Kingdom, Canada and Australia have been reduced relative to other contracting and non-GATT countries. [4] During the Kennedy Round (1962-67), the average level of tariffs for GATT participants was about 15%. [4] After the Uruguay Round, tariffs were less than 5%. [4] The Doha Development Round began in 2001. The Doha Round began in 2001 with a ministerial meeting in Doha, Qatar. The aim was to focus on the needs of developing countries.

The main factors examined are trade facilitation, services, rules of origin and dispute resolution. Special and differentiated treatment of developing countries was also discussed as a principal. The following ministerial meetings were held in Cancer, Mexico, in 2003 and Hong Kong (2005). These negotiations took place in Paris, France (2005), Potsdam, Germany (2007) and Geneva, Switzerland (2004, 2006, 2008). Progress in the negotiations stalled after negotiations broke down in July 2008. [17] [18] Japan`s strong economic growth played the important role it would later play as an exporter, but the kennedy Round`s centre of gravity has always been the relationship between the United States and the EEC. In fact, there was an influential American view that saw what became the Kennedy Round as the beginning of a transatlantic partnership that could ultimately lead to a transatlantic economic community. The fourth round returned to Geneva in 1955 and lasted until May 1956. 26 countries participated in the cycle.

$2.5 billion in tariffs have been eliminated or reduced. At the beginning of the GATT, the focus was on reducing tariffs and import duties to promote trade and reduce protectionism. This target has been largely achieved for industrial production over many business cycles. Tariffs on trade in industrial products were reduced from about 40% to less than 5% in the period from the creation of the GATT to the current implementation of the Uruguay Round.

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