28 Apr, 2022
General Agreement on Tariffs and Trade Occurred in 1993 Called for
Posted by: Hector Danilo Pompa Dominique In: Uncategorized
The General Agreement on Tariffs and Trade, commonly referred to as GATT, was a multilateral agreement signed in 1947 that aimed to reduce trade barriers between member countries. Over time, GATT negotiations expanded to cover broader trade issues such as intellectual property and services trade. However, it wasn`t until 1993 that the GATT negotiations resulted in a breakthrough that cemented the organization`s legacy.
The Uruguay Round of GATT negotiations began in 1986 and lasted for seven years. It was the longest and most comprehensive round of negotiations in GATT`s history, involving 123 countries and covering a wide range of issues.
The negotiations were difficult and often contentious, with countries divided on various issues such as agricultural subsidies, intellectual property rights, and textile trade. However, after several rounds of negotiations, the participating countries reached a historic agreement in December 1993.
The agreement, known as the Uruguay Round Agreement, was a comprehensive package that covered a range of issues, including trade in goods, services, and intellectual property. It established the World Trade Organization (WTO) as the successor to GATT and created a binding dispute settlement mechanism.
One of the most significant outcomes of the Uruguay Round was the reduction of trade barriers. The agreement called for the gradual elimination of tariffs on industrial goods, as well as the reduction of agricultural subsidies. It also addressed the issue of non-tariff measures, such as quotas and licensing requirements, which can be used to restrict trade.
Another important aspect of the Uruguay Round was the inclusion of developing countries in the negotiations. These countries were given greater access to developed country markets, and special rules were established to help them participate in the global trading system.
The Uruguay Round Agreement was a milestone in the history of international trade. It marked a shift towards greater liberalization and integration of the global economy. The establishment of the WTO provided a framework for resolving trade disputes and promoting free trade.
Overall, the Uruguay Round Agreement represents a general agreement on tariffs and trade that has had a far-reaching impact on the world economy. It has helped to create a more level playing field for countries in the global trading system and has contributed to the growth and prosperity of the world economy.
