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General Agreement on Tariffs and Trade

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General Agreement on Tariffs and Trade

Agreement designed to provide an international forum to encourage regulation of international trade. The original agreement was signed in 1947, shortly after World War II. It was followed in 1948 by the creation of an international organization, within the United Nations, to support the agreement and to encourage free trade between nations by reducing tariffs, subsidies, quotas, and regulations that discriminate against imported products. The agency GATT was effectively replaced by the World Trade Organization (WTO) in January 1995, following the conclusion of the Uruguay Round of multilateral negotiations which also extended GATT coverage to trade in services, intellectual property, and agricultural products.

During the round of talks that began in 1986 in Uruguay, the USA opposed European Community (EC) restrictions on agricultural imports, but argued to maintain restrictions on textile imports to the USA. Talks repeatedly stalled over a plan to reduce farm subsidies, but the round eventually ended in 1993 when negotiators from the European Union (formerly, to 1993, the EC) and USA reached agreement, and the resulting Final Act was signed on 15 April 1994 in Marrakesh, Morocco.



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He later insisted that freer trade be a key element of postwar planning, which led to the creation of the General Agreement on Tariffs and Trade.
Prior to WTO, the General Agreement on Tariffs and Trade (GATT) settled trade disputes.
The 1993 NAFTA Treaty states: "The Parties affirm their existing rights and obligations with respect to each other under the General Agreement on Tariffs and Trade and other agreements to which such Parties are party.
 
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