The Purpose Of The General Agreement On Tariffs And Trade Is To Reduce Trade Barriers

The sixth round of GATT multilateral trade negotiations, which took place from 1964 to 1967. It was named after U.S. President John F. Kennedy in recognition of his support for the reformulation of the U.S. trade agenda, which culminated in the Trade Expansion Act in 1962. This legislation has given the president the greatest bargaining power of all time. The Uruguay Round of multilateral trade negotiations of the General Agreement on Tariffs and Trade (GATT) ended in 1994, after 7.5 years of negotiations, with the signing of the final deed on 15 April 1994 in Marrakech, Morocco. This issue, known as the „GATT of 1994,” led to the creation of the World Trade Organization (WTO) on 1 January 1995. Among the agreements included in the WTO Treaty is the Agreement on the Application of Health and Plant Health Measures (SPS Agreement), which sets out the basic rules for the protection of human, animal and plant health during international trade (WTO, 1995). Some countries, particularly developing countries, maintain fairly high tariffs, but have decided to reduce real tariffs to below the set rate. This tariff is referred to as the applied tariff.

A unilateral reduction in tariffs is permitted under the GATT, as is an increase in the rate applied to the linked rate. For more explanation, please refer to Chapter 1 „Trade Introductory Questions: History, Institutions and Legal Framework,” Section 1.9″Annex B: Tariffs Related to Tariffs Applied.” The GATT consists of a series of promises or commitments that countries make to each other with respect to their own trade policy. The aim of the GATT is to make trade freer (i.e. promote trade liberalization) and, therefore, the promises made by countries must include the removal of trade barriers. Countries that make these commitments and sign the agreement are called signatories. Discussions that take place before the commitment decision are referred to as rounds of negotiations. Each round usually receives a name related to either the location of the sessions or a prominent character. Within the framework of the GATT, there were eight rounds of negotiations: the Geneva Round (1948), the Annecy Round (1950), the Torquay Round (1951), the Geneva Cycle II (1956), the Dillon (1962), the Kennedy Round (1967), the Tokyo Round (1979) and the Uruguay Round (1994). The most important thing is that the agreements are concluded by mutual agreement. A round will not end until each negotiating country is satisfied with the promises it and all its negotiating partners make. The sometimes used slogan is: „Nothing is agreed until everything is agreed.” Perhaps the most important free trade area, implemented over the last fifty years, was the European Economic Community, established in 1960 by the main countries of Western Europe and which eventually led to the creation of the European Union in 1993.

The term „union” refers to the fact that the territory is now a customs union that not only encompasses the free trade in goods and services, but also allows the mobility of workers and other factors of production. In addition, some of the main European countries have gone further by creating and using the euro as a common currency, thus creating a monetary union alongside the customs union. At the end of the Second World War, there was a consensus that tariffs are too high in the world and that tariff reductions could stimulate international trade and bring the world back to a prosperous economy in peacetime. In the years following the Great Depression and World War II, there was a global breakthrough in building institutions that would connect the nations of the world. The United Nations was officially established in 1945. The World Bank, which helps the world`s poorest, and the International Monetary Fund, which deals with issues raised by international financial transactions, were both established in 1946. The third organization envisaged should be an international trade organization, which should manage international trade.

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