The General Agreement on Tariffs and Trade (GATT) was first signed in 1947.
To provide an international forum
That encouraged free trade between member states
By regulating and reducing tariffs on traded goods
Providing a common mechanism for resolving trade disputes.
Was the outcome of the failure of negotiating governments to create the ITO (International Trade Organization)
The Bretton Woods Conference introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II
As governments negotiated the ITO, 15 negotiating states began parallel negotiations for the GATT as a way to attain early tariff reductions
Once the ITO failed in 1950, only the GATT agreement was left.
A Treaty, not an Organization
The GATT's main objective was the
“ Reduction of Barriers to International Trade ”
This was achieved through the Reduction of
Subsidies on trade through a series of agreements
Function of GATT
Most favored Function Status.
Protection through tariff.
Trade Negotiation among Developing Countries.
Why did we need GATT…..??? When did it all start….
Did GATT succeed?
Increased world trade growth 1950s and 1960s — around 8% a year on average
With Trade growth, production growth was also witnessed.
Recognition of multilateral trading system as the anchor for development and an instrument of economic and trade reform.
Every country started protecting their home industry.
High rates of unemployment and constant factory closures led governments in Western Europe and North America to
Both these changes undermined GATT’s credibility and effectiveness.
World trade had become far more complex and important than 40 years before
The globalization of the world economy was underway
Trade in services — not covered by GATT rules
Ever increasing international investments
Factors such as Unemployment, Crisis, Ineffective Trade Laws, Poverty convinced GATT members that a new effort to reinforce and extend the multilateral system should be attempted.
That effort resulted in the Uruguay Round, the Marrakesh Declaration, and the creation of the WTO.
123 countries participated
Chaired by Arthur Dunkel
The last and largest round of GATT which led the foundation of GLOBAL VILLAGE
It involved trade of GOODS, SERVICES,TECNOLOGY and TRIPs
Agriculture was the key concern of round
It was scheduled to be completed in 1990 which did not happened due to lack of agreement between participating nations in areas such as patents, maritime and agriculture.
Initially it seemed that the purpose of round will fail but at the end it brought the biggest reform in the worlds trading system.
As the negotiation dragged on the DG of GATT Arthur Dunkel ,gave a draft in December 1991 for solving the problem of deadlock popularly known as “Dunkel Draft”.
The round was finalized on 15 April 1994 and was signed by 117 nations out of 123.
“ A round that made the World Flat”
GATT AND INDIA
India was one of the 23 founding Contracting Parties to the General Agreement on Tariffs and Trade (GATT) that was concluded in October 1947.
India has often led groups of less developed countries in subsequent rounds of Multilateral Trade Negotiations (MTNs) under the auspices of the GATT.
GATT and Indian Pharma Industry
It was only after the GATT Trade Rounds that Indian Drugs Industry was allowed to patent its product.
But the price of the patent was very expensive.
GATT strengthened India's Pharma Sector.
Improved Research Base.
GATT and India’s Agriculture Sector
The main objective of the GATT Treaty is to reform world trade.
GATT and Indian Agri sector is divided into 3 main phases
Market Access. In this all the GATT members were replace all the Trade Barriers and to allow Indian Supplies into their country. Tariffs reduced by 24% to 36%. Domestic Support. Develop countries also supported India to grow their Domestic Consumption. India has a big Domestic Market. Export Competition. Indian Agriculture industry has always been strong. India used to Export to many developing and under developed countries. India only had competition when it comes to Sales in Developed Countries.
Thank You…!! Presented By Anish Pillai 07 Brijesh Yadav 14 Jomy John 21 Pradeep Pillai 40 Punit Nair 41