ABSTRACT:
This paper critically examines the General Agreement on Tariffs and Trade (GATT), a cornerstone in the development of international trade law. From its provisional adoption in 1947 to its transformation under the World Trade Organisation (WTO) in 1995, GATT has played a central role in promoting trade liberalisation, non-discrimination, and dispute resolution among nations. The paper outlines the historical evolution, legal structure, and core principles of GATT, evaluates its efficacy and limitations, and reflects on its enduring legacy in contemporary trade governance.
Keywords- General Agreement on Tariffs and Trade (GATT), International trade law, WorldTrade Organisation (WTO), Tariffs, Trade barriers, Most-favoured-nation treatment (MFN),International Trade Organisation (ITO).
1. INTRODUCTION
The General Agreement on Tariffs and Trade (GATT), adopted in 1947, marked a transformative moment in the governance of international trade. Conceived as a temporary solution pending the establishment of the International Trade Organisation (ITO), GATT evolved into the de facto legal framework for global trade until the creation of the WTO. Its enduring principles—most-favoured-nation treatment, national treatment, tariff bindings, and transparency—have provided a stable legal foundation for multilateral trade, shaping not only economic relations but also the legal contours of international cooperation.
2. HISTORICAL BACKGROUND
The aftermath of World War II and the economic devastation of the Great Depression prompted the international community to adopt multilateral approaches to trade. The Bretton Woods Conference of 1944 proposed three institutions: the IMF, World Bank, and ITO. While the ITO failed to materialise due to political resistance, particularly in the United States, the GATT was signed in 1947 by 23 nations as a provisional agreement.
Initially aimed at reducing tariffs and fostering economic cooperation, GATT’s provisional nature ironically became its strength. Through successive negotiating rounds—including the Kennedy, Tokyo, and Uruguay Rounds—GATT progressively broadened its scope, addressing non-tariff barriers, subsidies, and eventually services and intellectual property.