the general agreement on tariffs and trade (gatt) was part of american attempts to increase protective tariffs.
the general agreement on tariffs and trade (gatt) was part of american attempts to increase protective tariffs.
the general agreement on tariffs and trade (gatt) was part of american attempts to increase?
protective tariffs
in 1947, 23 countries concluded the general agreement on tariffs and trade (gatt) at a un conference in geneva. delegates intended the agreement to suffice while member states would negotiate creation of a un body to be known as the international trade organization (ito). as the ito never became ratified, gatt became the "de facto" framework for later multilateral trade negotiations. members emphasized trade reprocity as an approach to lowering barriers in pursuit of mutual gains. the agreement's structure enabled its signatories to codify and enforce regulations for trading of goods and services. gatt was centered on two precepts: trade relations needed to be equitable and nondiscriminatory, and subsidizing non-agricultural exports needed to be prohibited. as such, the agreement's most favored nation clause prohibited members from offering preferential tariff rates to any nation that it would not otherwise offer to fellow gatt members. in the event of any discovery of non-agricultural subsidies, members were authorized to offset such policies by enacting countervailing tariffs. the agreement provided governments with a transparent structure for managing trade relations and avoiding protectionist pressures. however, gatt's principles did not extend to financial activity, consistent with the era's rigid discouragement of capital movements. the agreement's initial round achieved only limited success in reducing tariffs. while the u.s. reduced its tariffs by one third, other signatories offered much smaller trade concessions.
global financial system
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