The paper "Main Accomplishments of General Agreement on Tariffs and Trade " is an outstanding example of a management report. The report will help the readers to understand different aspect of the General Agreement on Tariffs and Trade (GAAT) and its role in international trade. The paper on the forefront highlights information about GAAT and then shows the different contribution and accomplishments which have been achieved under GAAT. The paper then highlights the difference that exists between GAAT and World Trade Organization (WTO) so the difference in the functioning of both can be understood.
This will thereby help the readers to understand the manner in which both GAAT and WTO works in an international arena. 2.0 General Agreement on Tariffs and Trade (GAAT) The General Agreement on Tariffs and Trade (GAAT) is part of the Bretton Woods Conference which was created with the objective of ensuring economic recovery especially after the impact World War II had left. GAAT is a set of the multilateral trade agreement which was created so that the rigid quota system and tariffs can be reduced among nations so that trade could between nations take place.
Initially, GAAT had 23 nations as its member and it started its operations from 1st January 1948. GAAT played a huge role in shaping the manner in which trade was carried out between countries and resulted in increasing the overall world trade. GAAT was finally replaced by the World Trade Organization (WTO) in 1995 when 125 countries signed as signatories. It became one of the most prominent codes of conduct and governs more than 90 percent of the overall trade carried out over the world. GAAT is a set of rules and principles which has its applicability on trade and fosters towards increasing international trade among nations.
The main objective of GAAT was to reduce the different barriers which international trade was witnessing in the form of quotas, trade barriers, tariff rates, and other subsidies. It is also seen that GAAT was not an organization but an agreement among the different nations to carry business without any barriers. The main objectives which GAAT looked towards accomplishing are Improving the standard of living of people through better trade relations Achieving full employment and ensuring economic stability for all nations which includes developed and developing economies Increasing the volume of real income through the process of creating demand for different goods and services and trading those goods and services among nations Increase in production of goods and services and increased emphasis on the exchange of goods Using the different resources in a manner through which growth of economies become possible GAAT looked towards ensuring that nations enter into a multilateral agreement among themselves with the objective of relaxing the different trade rules among nations.
This would provide flexibility and help the business both domestically and internationally. The basic principle based on which GAAT was developed was to remove differences among nations and opening up the economies so that free trade could be carried out. GAAT further looked at providing the participating nations with special tariff concession so that liberalization could take place. The rules implemented by GAAT had certain fixed and rigid rules which every participating member had to follow and some rules which were flexible. The rules were developed in such a manner that tariffs were allowed to a certain degree so that no nations could take advantage of the other.
This provided flexibility and ensured that different clauses provided different trade concession which helped the different participating members to garner maximum advantage.
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