General Agreement on Tariffs and Trade (GATT)

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The General Agreement on Tariffs and Trade (GATT) was a pivotal international trade treaty signed by 23 countries on October 30, 1947, in Geneva, Switzerland. It aimed to reduce trade barriers and promote nondiscriminatory trade practices among its member nations. GATT was initially intended as a temporary measure until the establishment of the International Trade Organization (ITO), but it became the de facto framework for international trade for nearly five decades. It successfully lowered average tariff rates on industrial goods from about 40% in 1947 to less than 5% by 1993. GATT facilitated eight rounds of multilateral trade negotiations, culminating in the Uruguay Round, which led to the creation of the World Trade Organization (WTO) in 1995. The WTO replaced GATT, providing a more comprehensive institutional framework for international trade. GATT's legacy is significant in shaping modern international trade rules, emphasizing open and nondiscriminatory trade practices. It played a crucial role in post-World War II economic recovery and globalization, influencing trade policies worldwide.