1. GENERAL AGREEMENT ON
TARIFFS AND TRADE
Presented by
Biltu Patra

2. INTRODUCTION
• General Agreement on Tariffs and Trade
(GATT) was a multilateral agreement
regulating international trade.
• GATT was established in 1947.
• Transformed to World Trade
Organization(WTO) IN 1995.

3. OBJECTIVES OF GATT
• Reduced tariff-barriers and free trade.
• Developing full use of resources of the world.
• Expansion of production and international
trade.
• Ensuring full employment and large and
steady growing volume of real income and
effective demand.

4. PRINCIPLE OF GATT
• Trade should be on non-discriminatory basis.
• Quantitative restrictions on trade are
prohibited.
• Settlement of trade disputes should be
achieved through consultations within the
framework of GATT.
• Tariff reductions are to be accomplished in a
series of multilateral negotiations, or GATT
rounds

5. EVALUATION OF GATT
• GATT was signed by 23 nations in Geneva on
October 30, 1947 and took effect on January
1, 1948. It lasted until the signature by 123
nations in Marrakesh on April 14, 1994 of the
Uruguay Round Agreements, which
established the World Trade
Organization (WTO) on January 1, 1995.

6. Difference between GATT & WTO
GATT
 GATT was provisional.
 GATT has contracting
parties.
 GATT system allows
existing domestic,
legislation to continue even
if it violated GATT
agreement.
 GATT was less powerful and
dispute settlement
mechanism was less
efficient
WTO
 WTO is permanent.
 WTO has members.
 WTO does not permit this.
 WTO is more powerful and
dispute settlement
mechanism was more
efficient.

7. FUNCTIONS OF GATT
• Most favored nation clause.
• Trade negotiations.
• Tariff and non-tariff measures.
• Safeguards.
• Complaints and waivers.
• Settlement of disputes