GATT

General Agreement on Tariffs and Trade (GATT)
• WWII allies want international organization in trade arena similar to UN in political arena.
• GATT proposed by US in 1947 as step toward ITO.
o 1948: Havana Conference.
o Failed charter for the International Trade Organization.
• GATT
o 23 original members
o Now 149 members including the Saudi Arabia
• Multilateral agreement: objective is to liberalize trade by eliminating tariffs, subsidies, import quotas, etc.
• Used ‘rounds’ to gradually reduce trade barriers.
• Generalized System of Preferences
• MFN status
• Products of LDCs are given duty free access to IDCs.

Objectives of GATT
1. To raise the standard of living of the people in the world
2. To ensure full employment and steady income
3. To develop the use of resources of the world
4. To expand production and international trade
Several rounds of negotiations were held since the inception of the GATT.
The significant round is the Uruguay round of 1986.
Uruguay Round and Dunkel Proposal
 Uruguay round of multi national trade negotiations was initiated in September 1993.
 Mr. Arthur Dunkel, the Director General of GATT submitted a proposal on 20th December 1991 popularly known as Dunkel Proposal which envisages many areas like trade related investment measures (TRIMs), Trade related intellectual property rights (TRIPs).
 An arrangement regarding multilateral trading system was finally signed in Marrakesh, Morocco on 15th April 1994.