The GATT was created to create rules to end or limit the most costly and undesirable features of the pre-war period, namely quantitative barriers to trade such as trade controls and quotas. The agreement also provided for a system for resolving trade disputes between nations and the framework allowed for a series of multilateral negotiations on the removal of customs barriers. The GATT was considered a major success in the post-war years. The GATT has introduced the principle of the most favoured nation into members` collective agreements. The GATT came into force on January 1, 1948. From the beginning, it was refined, which eventually led to the creation, on 1 January 1995, of the World Trade Organization (WTO), which absorbed and expanded it. To date, 125 nations signed its agreements, which covered about 90% of world trade. , signed by 23 countries on 30 October 1947, was a legal agreement to minimize barriers to international trade by eliminating or reducing quotas, tariffs and subsidies, while maintaining important rules. The GATT is expected to stimulate economic recovery after the Second World War through the reconstruction and liberalization of world trade. Most nations have adopted the nation`s most preferred principle when setting tariffs, which has largely replaced quotas. Tariffs (preferably quotas, but still an obstacle to trade) have in turn been constantly reduced in successive rounds of negotiations. In 1964, the GATT began to work to curb the predatory pricing policy. These measures are classified as dumping.
Later this year, countries will continue to address global issues, including the fight against agriculture and intellectual property protection work. 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 escape clauses under which countries could negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. Dartmouth. “The GATT`s Starting Point: Tariff Levels circa 1947,” page 13, 28. Access on October 1, 2020. This series of meetings and reduced rates would continue, allowing for new GATT provisions in the process. The average tariff rate rose from about 22% when the GATT was first signed in Geneva in 1947, to about 5% until the end of the 1993 Uruguay Cycle, which also negotiated the creation of the WTO. Swedish Ambassador Mikael Anzén has been President of the Council since October 2020.
The Council has ten committees on issues such as market access, agriculture, subsidies and anti-dumping measures. Each of the conferences has had significant successes and results.