GATT-General Agreemement on Tariff & Trade

(GATT-General Agreemement on Tariff & Trade)

(GATT-General Agreemement on Tariff & Trade)
General Agreement on Tariffs and Trade
GATT FULL FORM – General Agreemement on Tariff & Trade

In 1947, 23 countries signed the GATT-General agreement on Tariffs and Trade to expand international trade.

India was one of the founding members of the GATT. Through the GATT, efforts were made to encourage international trade by reducing tariff rates and quantitative restrictions and discouraging protective government policies.

Most Favoured Nation (MFN) was the basic notion of GATT, which provided that if a country provides any benefit, support or facility to any goods produced in another country, then this benefit, support or facility is automatically and instantly All other countries producing the commodity will be unconditionally pressured.
The basic objective behind this section was to establish multilateral trade relations in place of bilateral trade relations so that world trade can develop smoothly. The arrangement under the GATT was that all the members would meet from time to time in international trade through multilateral trade agreements.
Try to reduce incoming bottlenecks and reduce import tariffs and quantitative restrictions. Members used to call these meetings Rounds.

A total of 8 rounds took place under the auspices of GATT.

  • I. Havana (1947)
  • II. France (1949)
  • III. England (1950-51)
  • IV. Geneva (1955–56)
  • v. Geneva (1960–62)
  • VII. Tokyo (1973–79)
  • VILL. Uruguay (1986–94)
  • VI. Geneva (1964–67)

In all these periods many trade restrictions were abolished, international trade of many goods was simplified and many quantitative restrictions were lifted. The longest and most difficult round was the eight round Uruguay, which lasted for eight years
Kept going In this era, there was a lot of difference between developed and developing countries on many issues. There was a lot of controversy over the issue of assistance to agricultural commodities, multi fiber agreement, trade in services, intellectual property rights and so on.
For the purpose of settling these conflicts, the Director General of GAT, Arthur Dunkle, proposed a proposal known as the ‘Dunkel proposal’. Take it for granted

Therefore, this proposal was necessary for those countries. Many parts of this proposal strongly opposed the developing country. But finally all the member countries of GAT signed the proposal on 15 April 1994 in Marakash (Morocco, Africa). The Uruguay Round ended on 15 December 1994.
It started in September 1986. The signing of the Dunkel proposal was signed in April 1994 and is the WTO since January 1, 1995.

Which saw technical assistance and training to developing nations. The successor to the Tariff and Trade General Agreement (GATT) established as a result of World War II.
To collaborate with other international organizations.

Criticisms of economic reforms

Economic reforms paved the way for the establishment of the World Trade Organization (WTO). On this proposal the organization of all the member countries of GATT came into existence. India established WTO
Gave its consent to the related agreement on 30 December 1994. The WTO was headquartered in Geneva. As of November 2015, the WTO had 162 country members. Kazakhstan, the 162nd member, was formed on November 30, 2015.

GATT was not an institution but only a statutory system, but the WTO is a permanent international organization with the main objective of international trade and commerce.
To regulate and encourage. The objective of the World Trade Organization is to develop a rule-based trading system by adopting multilaterism in world trade, so as to promote free and fair trade between all countries. There is a way to resolve disputes
Dispute-settlement-plant (DSM) has been established. This arrangement helps in resolving disputes between countries.

The World Trade Organization is the youngest at the international level. It has the following functions

1. Conduct business agreements.
2. Forum for trade treaty negotiations.
3. Settling trade related agreements.
4. To oversee national trade policies.

Critics have pointed out several shortcomings in the new economic policy. It is a policy of protecting foreign interests and not in the larger interest of the country, which is going to benefit the affluent class. The major criticisms of this policy are as follows.
• This policy is the feeder of capitalist elements – In this policy, the capitalist elements will dominate by opening the economy completely to the private sector. The imagination of socialist society has started to seem meaningless and consumerism has been promoted by giving more and more concessions to the affluent class.
• The threat of continued increase in foreign debt has arisen. This increase of foreign debt will further increase the payment imbalance. The pressure of the International Monetary Fund and the World Bank has increased on the Indian economy.

• Fear of increasing unemployment in India Where the problem of unemployment in India is constantly increasing, the retrenchment of workers from the Exit Policy in industries will not only complicate the problem of unemployment, but by dissolving the production from industrial disputes. Will bring down In this policy
There is no system to solve the problem of unemployment.

• Multinational companies will increase the sovereignty of the country and threaten indigenous and self-reliance. Foreign multinationals will not hesitate to exploit the Indian economy by establishing its dominance. Political corruption can also be resorted to.
There is no provision in the new economic policy for agriculture – agriculture has an important place in the economy of India, but still there is no provision in relation to agriculture in this new policy. Liberalization and free cross policy in agriculture can prove fatal.

Thus far-reaching side effects have not been taken into account in the new economic policy. New economic policy needs to be implemented cautiously keeping in mind the increasing unemployment and poverty reduction, freedom from industrial exploitation and increasing foreign debt. In the money market and capital markets, the interests of investors should be given top priority. The country’s self-reliance and indigenous industries must be protected.

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