General Agreement on Tariffs and Trade

The General Agreement on Tariffs and Trade ( General Agreement on Tariffs english and Trade, GATT ) was concluded on 30 October 1947, when the plan for an International Trade Organization (ITO ) could not be realized. The Agreement entered into force on 1 January 1948.

The GATT 1947 did not form the International organization, but was an ordinary international treaty, which is why its 23 founding members (Australia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, Taiwan (Republic of China), Cuba, France, India, Lebanon, Luxembourg, New Zealand, Netherlands, Norway, Pakistan, Southern Rhodesia, Union of South Africa, Syria, Czechoslovakia, United Kingdom and USA) were also referred to as the "Parties" and not as Member States. The Federal Republic of Germany occurred on October 1, 1951 as the contract system. Switzerland joined in 1966 as a full member. Austria belongs to the GATT since October 19, 1951. All members of the World Trade Organization ( WTO) are automatically members of GATT. Seat of the GATT Secretariat was Geneva, where the WTO is located today.

It represents an international agreement on global trade dar. Until 1994 tariffs and other trade barriers were gradually removed in eight rounds of negotiations. Due to the GATT in history, the foundation stone for the establishment of the World Trade Organization (WTO 1995) has been placed, in which it is still incorporated. At that time belonged to the agreement on equal 123 member countries. To distinguish between the original and today's agreement within the WTO, the year 1947 and 1994 will be added in the rule.

• 3.1 The Tokyo Round
• 3.2 The Uruguay Round

Historical Background

The beginning of the GATT is 1944 in the USA when the Bretton Woods conference was held, attended by 44 States. This is responsible for the establishment of a fixed exchange rate system, founded the International Monetary Fund (IMF ) and the World Bank. On one point, however, no agreement could be reached: The creation of a World Trade Organization. Instead, the Bretton Woods conference developed a treaty, which entered into force in 1948: The General Agreement on Tariffs and Trade ( GATT).

Responsibilities

Through the GATT was established that taxes, duties and other barriers need to be dismantled in international trade. This world trade and world economy should be promoted. This resulted in two principles: First, the most favored nation (the principle of equal treatment), same tariff concessions are granted on all trading partners of a country. Second, the prohibition of discrimination, apply to the adopted exceptions to the prohibition of quantitative restrictions on all. It should also be established by GATT a process for resolving international trade disputes. The measures focused mainly on trade in goods. Exceptions to the GATT principles are also possible, such as the MFN principle within a customs union or free trade area, such as the European Union. Even neighboring countries and developing countries can special trade preferences.

Principles of equal treatment ( " anti-discrimination " )

Disadvantages when trading should be substantially prevented by three principles:

Exceptions

Article XIV allows exceptions to the MFN principle.

Article XII allows restrictions to protect the balance of payments.

Article XIX allows emergency action on imports of particular products to prevent domestic producers of serious damage is done. This exception has been applied frequently in 1947 under GATT, however, is regulated in the GATT 1994 by an additional agreement stronger.

Article XXV: 5 allowed in exceptional, unforeseen circumstances, that a contracting party is relieved of an obligation. About such an exception, the Contracting Parties decide by a two -thirds majority.

Article XX regulates general exceptions. On the proviso that it does not take place arbitrarily or leads to a disguised restriction on international trade, the Parties may carry out inter alia the following measures:

• Measures to protect the life and health of humans, animals and plants;
• Measures relating to the products of prison;
• Measures for the protection of national treasures possessing artistic, historic or archaeological value.

And under certain conditions:

• Measures for the conservation of exhaustible natural resources;
• Measures for the implementation of obligations under any intergovernmental commodity agreement;
• Measures that have restrictions on the export of domestic commodities result.

Rounds of negotiations

From 1948 to 1994, the rules have been defined for the majority of world trade through GATT. During this time there were eight more years of negotiation rounds ( among others in France, Great Britain, Belgium and Morocco). This cross-continental meeting was attended by 1948 in Havana ( Cuba) began. It turned out that GATT was the only multilateral instrument to control the international trade can. In the early years, the trade rounds concentrated on lowering tariffs. The so-called Kennedy Round (1964-1967) was an anti- dumping agreement to avoid price erosion and a lesson to development. In the 70's the Tokyo Round represented the first significant attempt to oppose international trade barriers. The last and most extensive round of negotiations, the Uruguay Round led (1986-1994) establishing the WTO and a new set of agreements.

The Tokyo Round

The Tokyo Round (1973-1979) was a first attempt to reform the international trading system. At these negotiations, 102 countries participating. It continued the trade tariffs to reduce further efforts. One result was the average reduction in customs duties for industrially manufactured products to around 4.7%. This was done according to the principle of proportionality: the higher the tariff, the higher the reduction.

In other negotiating priorities were discrepancies between the participants. One point of contention was the reform of agricultural trade. Nevertheless, they agreed on a series of agreements that affected duty-free state borders. In many cases, only a small number of GATT members signed these agreements and arrangements. These agreements were not accepted and not multilaterally were unofficially referred to as codes. Several codes were revised in the Uruguay Round and converted into multilateral commitments.

The Uruguay Round

The foundation stone of the Uruguay Round was laid in November 1982 at a meeting of the delegates in Geneva. The work program adopted became the basis of the negotiating agenda in Uruguay. In September 1986, began in Punta del Este (Uruguay ) negotiations. They included outstanding trade issues. The trading system was extended to several new areas to improve trade in the sensitive areas of agriculture and textile industries. In addition to these points, all the original GATT articles were discussed. This hitherto largest negotiating mandate should be completed over a period of four years. After half the time a meeting of the Commissioners in Montreal (Canada, 1988) was held to assess the progress of the order. In these talks, but no agreement could be reached. For this reason, a further meeting of the officials in Geneva took place the following April. At the end of the negotiations, a package of decisions was made.

In order to encourage developing countries to make concessions in market transparency for tropical products were made. For quick disposal of disputes under the trade partners a conflict system as well as a review mechanism for trade policy were introduced. In agricultural matters, however, few results have been achieved, and it was decided to continue talks later. Finally, a first draft of the final legal agreement, the "Final Act " was born. This was translated by the Director-General of GATT, Arthur Dunkel later and presented in December 1991 in Geneva. The text fulfilled all aspects of the Uruguay Round, with one exception: the list of commitments for cutting the import tax and opening their services markets (. , See also GATS, General Agreement on Trade in engl Services). The design became the basis for the final decision.

In July 1993, the USA, Japan, the EU and Canada announced that significant progress in the tariff negotiations in similar areas have been achieved (market access ). It took until 15 December 1993 to every problem has been solved and completed the negotiations on market access for goods and services. The agreement was signed in Marrakesh (Morocco ) signed by the deputies of the 123 participating countries on 15 April 1994.

Results

The (GATT ) agreed actions in the General Agreement on Tariffs and Trade presented only a temporary nevertheless succeeded for 47 years to promote and secure the liberalization of world trade successfully. The ongoing reduction of customs duties encouraged between the 50s and 60s at very high growth rates of world trade. As a result could be achieved an average growth rate of 8% per year. During the GATT era trade growth exceeded by trade liberalization, production growth. The stability of this trading system caused an increase in membership since the Uruguay Round. The reforms resulted in a sustained improvement and development of the international economic and trade relationships.

For establishing the WTO, the achievements of the GATT negotiations have been used as an umbrella contract and still exist today. The GATT rules are composed of the original Treaties of 1947 (GATT 1947), the updated statutes of the Uruguay Round and the final changes of 1994 ( (GATT 1994), Marrakech). Today, the WTO controls international trade in goods.