Question

Write notes.

GATT agreement

Write the 'GATT' Agreement in terms of globalization.

Answer 1

1. During the times of Second World War, many countries had adopted the policy of imposing various duties and taxes on imported goods, with a view to protect their home markets.  It resulted in declining of trade. A meeting was called in Cuba to discuss this problem, which was attended by 56 nations.
2. It was decided to establish a permanent organisation to resolve the problems related to international trade. A legal agreement was signed in Geneva by 23 nations in 1947, which is known as GATT.
3. This agreement was the first multinational trade agreement. GATT gave priority to economic development through production and trade, to treat the member countries as ‘most favoured nations’.
4. An annual meeting of the member countries of GATT used to be held at Geneva. It was attended by the representatives of the member countries. Each country was entitled to one vote. Problems faced by individual nations regarding the difficulties in international trade were discussed in the meeting and the decisions were based on these discussions.
5. Later GATT became a part of a more encompassing organisation known as ‘World Trade Orgnisation’ - WTO.