The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement signed in 1947 that aimed to promote international trade and reduce barriers to trade between member countries. GATT was later replaced by the World Trade Organization (WTO) in 1995, which continues to promote free trade and resolve disputes between member countries.
On Quizlet, there are several statements about GATT that may or may not be true. Let`s take a closer look at each statement and determine which ones are accurate.
1. GATT was established in 1995.
False. GATT was established in 1947, not 1995. It was replaced by the WTO in 1995, but the original agreement was signed almost fifty years prior.
2. GATT was created to promote free trade and reduce barriers to international trade.
True. The primary goal of GATT was to encourage free trade between member countries by reducing tariffs and other trade barriers.
3. GATT only applied to developed countries.
False. GATT applied to all member countries, regardless of their level of development. Developing countries were allowed to implement certain protectionist measures to help them grow their economies, but they were still subject to the rules and regulations of the agreement.
4. GATT was successful in achieving its goals of promoting free trade.
Partially true. GATT was successful in reducing tariffs and other trade barriers between member countries, which helped to increase international trade and promote economic growth. However, some critics argue that GATT also contributed to income inequality and environmental degradation, particularly in developing countries.
5. GATT was replaced by the World Trade Organization (WTO) in 1947.
False. The WTO was established in 1995 as a successor to GATT. While the two agreements share many similarities, the WTO has a wider scope and includes more member countries.
In conclusion, while there are some misconceptions about GATT on Quizlet, it is clear that the agreement was established in 1947 to promote free trade and reduce barriers to international trade. While it had some successes, it also faced criticism for contributing to income inequality and environmental degradation. Today, the WTO continues to build on the legacy of GATT by promoting free and fair trade around the world.