General Agreement For Trade And Tariff
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FAQ
The GATT was established in 1948 to regulate world trade. It was created to boost economic recovery after the Second World War by reducing or eliminating trade tariffs, quotas and subsidies.
GATT rules required that any member country give all members the same privileges regarding tariffs and other commercial policy measures that it gave to the most favoured nation (MFN) with which it negotiated. This was known as the MFN principle. It was established to remove trade discrimination.
There are twelve service sectors (Business; Communication; Construction and Engineering; Distribution; Education; Environment; Financial; Health; Tourism and Travel; Recreation, Cultural, and Sporting; Transport; and "Other") divided into sub-sectors.
Examples of regional trade agreements include the North American Free Trade Agreement (NAFTA), Central American-Dominican Republic Free Trade Agreement (CAFTA-DR), the European Union (EU) and Asia-Pacific Economic Cooperation (APEC).
The purpose of the General Agreement on Tariffs and Trade (GATT) was to make international trade easier. In 1995, the General Agreement on Tariffs and Trade (GATT) was absorbed into the World Trade Organization (WTO), which extended it.