Analysis of the importance of general agreement on tariffs and trade (GATT) and its contribution to international trade

Abstract

The establishment of trade organizations requires a number of provisions. However, the negotiators wanted to create an institution in which trade issues could be analyzed on a multilateral basis. Since its enforcement date on 1st January 1948, GATT has given international trade a new face. The international trade barely regulated before 1947, has since then become well structured and organized through the adoption of a system of work governed by general negotiations. This strategy has led to the reduction of tariffs and non-tariffs and settlement of disputes between the involved parties. There have been conferences at the ministerial level where experts and committee meetings were established to address specific problems. Several negotiations like “Kennedy round”, “Tokyo round” and “Uruguay round” have taken place since the inception of GATT. Some decisions undertaken in trade negotiations have concerned only the developing countries due to their unique problems in their development. However, Article 24 of GATT treaty authorizes regional groupings like European Economic Community (EEC), Economic Community of West African States (ECOWAS), as they are constituted as a free trade area, a customs union or community, provided only that these groups do not impose trade barriers with the rest of the world.