GATT

• The Story So Far... Economic pressure pushed countries to

impose trade barriers to divert national demand away from
imports and toward domestically produced goods.
• Several organisations were formed and treaties were then
signed, one of which is GATT
• The General Agreement on Tariffs and Trade (GATT) was first
signed in 1947.
Was designed?
• To provide an international forum
• That encouraged free trade between member states
• By regulating and reducing tariffs on traded goods
• Providing a common mechanism for resolving trade disputes.
 Objectives of GATT
• According to the Preamble of GATT, main objective was the
“Reduction of Barriers to International Trade”

• Tariff Change in monetary value Non tariff Quality and

quantity of products and services

• To expand International trade by liberating trade and build

an International trading system

• To ensure orderly and equitable expansion of world trade

and contribute to the prosperity of US.
 Objectives of GATT
• To expand International trade by liberating trade and build
an International trading system
• To ensure orderly and equitable expansion of world trade
and contribute to the prosperity of US.
• Reduce foreign export subsides, tariff and non-tariff barrier
and internal supports.
• Cuts costs by 50 – 100% on important electronic items
Objectives of GATT
• To expand International trade by liberating trade and build
an International trading system
 Objectives of GATT
• To ensure orderly and equitable expansion of world trade
and contribute to the prosperity of US.

• Reduce foreign export subsides, tariff and non-tariff barrier

and internal supports.

• Cuts costs by 50 – 100% on important electronic items

• To strengthen and clarify rules for agricultural trade.

• Better utilization of resource of the world.