Understanding the General Agreement on Tariffs and Trade (GATT): A Legal Overview

Definition & Meaning

The General Agreement on Tariffs and Trade (GATT) is an international treaty established in 1948 that aimed to promote free trade by reducing tariffs and other trade barriers among member countries. Initially intended to be part of the International Trade Organization, GATT evolved into an intergovernmental agency that regulated international trade policies. In 1995, it was incorporated into the World Trade Organization (WTO). GATT's core principles include nondiscriminatory trade among members, the protection of domestic industries through customs tariffs, and negotiated agreements on tariff levels among contracting parties.

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Real-world examples

Here are a couple of examples of abatement:

For instance, if a country imposes high tariffs on imported goods, other member countries may file a complaint under GATT rules to negotiate lower tariffs. Another example (hypothetical example) could involve a country seeking to protect its domestic industries by negotiating tariff reductions with its trading partners through GATT.

What to do if this term applies to you

If you are involved in international trade and need to understand your rights and obligations under GATT, consider consulting legal resources or professionals who specialize in trade law. You can also explore US Legal Forms for templates that may assist you in compliance and documentation related to international trade.

Quick facts

Attribute Details
Year Established 1948
Incorporated into World Trade Organization (1995)
Main Focus Reducing tariffs and trade barriers
Core Principle Nondiscrimination in trade

Key takeaways

Frequently asked questions

GATT aims to promote free trade by reducing tariffs and other trade barriers among member countries.