General Agreement On Tariffs And Trade

DEFINITION of 'General Agreement On Tariffs And Trade '

A treaty created following the conclusion of World War II. The General Agreement on Tariffs and Trade (GATT) was implemented to further regulate world trade to aide in the economic recovery following the war. GATT's main objective was to reduce the barriers of international trade through the reduction of tariffs, quotas and subsidies.

BREAKING DOWN 'General Agreement On Tariffs And Trade '

Formed in 1947 and signed into international law on January 1, 1948, GATT remained one of the focal features of international trade agreements until it was replaced by the creation of the World Trade Organization on January 1, 1995. The foundation for GATT was laid by the proposal of the International Trade Organization in 1945, however the ITO was never completed.

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RELATED FAQS
  1. Out of which international body did the World Trade Organization emerge?

    On January 1, 1995, the World Trade Organization (WTO) came into being. The WTO was an outgrowth of the General Agreement ... Read Answer >>
  2. How can tariffs cause inefficiencies in domestic industries?

    Understand what a tariff is and why a government would want to impose a tariff. Learn how tariffs can contribute to domestic ... Read Answer >>
  3. If left in place long term, what problems does protectionism cause for a country?

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  4. How do tariffs protect infant industries?

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  5. What are some examples of failed subsidies?

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