Question
GATT

Answer

  • During the times of the Second World War, many countries had adopted the policy of imposing various duties and taxes on imported goods, with a view to protecting their home markets.
  • It resulted in declining in trade. A meeting was called in Cuba to discuss this problem, which was attended by 56 nations.
  • It was decided to establish a permanent organisation to resolve the problems related to international trade. A legal agreement was signed by 23 nations on 30th October 1947, which is known as GATT. This agreement was the first multinational trade agreement.
  • GATT gave priority to economic development through production and trade, to treat the member nation as ‘most favoured nation’.
  • An annual meeting of the member countries of GATT used to be held in Geneva. It was attended by the representative of the member countries.
  • Each country is entitled to one vote. Problems faced by individual nations regarding the difficulties of international trade were discussed in the meeting and the decision was based on these discussions.
  • Later GATT became a part of the ‘World Trade Organisation’

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