Gatt And Its Eventual Development

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Founded in 1995, the World Trade Organization (WTO)—formally known as the General Agreement on Tariffs and Trade (GATT)—would officially commence in the late 20th century with more than 123 nations taking part. The intergovernmental organization, which was established to regulate international trade, replaced GATT as of April 15th, 1994 following the signing of the Marrakesh Agreement by more than 120 global nations, and was officially legitimized more than 20 years ago on January 1st 1995 following GATTS’s unsuccessful attempt in creating an International Trade Organization in 1948 (WTO, 2016). It is of vital importance to understand the history of GATT and its eventual development into what is known today as the World Trade…show more content…
It must be noted that GATT is not an organization, but rather an agreement among multilateral nations eager to take part in global trade. GATT strived to remove the many boundaries and tariffs that restricted nationals from trading. The smaller number of tariffs there were, the more trade would occur; the more trade taking place between nations, the stronger a country would be. Though originally intended to serve as a subsidy of the United Nations in 1947 during the UN Conference on Trade and Employment in Havana, Cuba and as the primary regulator of multi-national trade, the ITO failed final support and approval—particularly from the US Government. “In 1950, the United States Government Announced that it would not seek Congressional ratification of the Havana Charter, and the ITO was effectively dead (WTO, 2016).” This left GATT the sole multilateral institution to govern world trade for half-a-century. The General Agreement on Tariffs and Trade was negotiated and signed by 23 nations at the Palais Des Nation in Geneva on October 30, 1947. GATT would officially legitimize on January 1st of 1948 and its founding members “contracting parties” included: Australia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, Luxembourg, Netherlands, New Zealand, Norway, Pakistan, Southern
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