Global Agreement On Tariffs And Trade

The GATT had three main provisions. The most important requirement was that each member be obliged to confer the status of the most favoured country on any other member. All members must be treated the same with respect to tariffs. It excluded special tariffs between members of the British Commonwealth and the Customs Union. It allowed tariffs if their removal causes serious damage to domestic producers. The WTO was created in 1995 to succeed the General Agreement on Tariffs and Trade (GATT) created after the Second World War. THE WTO agreements, which are important for food protection measures, are measures relating to health and plant health measures (SPS) 2 and technical barriers to trade (OTC). The SPS and OBT agreements are complementary, both constituting the general legal basis for other legally binding international agreements and instruments that will be adopted on a voluntary basis, such as the Code of Conduct for Responsible Fisheries (Karnicki, 1996). The SPS agreement includes: relevant laws, regulations and regulations; testing, inspection, certification and authorisation procedures; packaging and labelling requirements directly related to food safety. On the other hand, the TBT agreement includes all technical rules relating to traditional quality factors, fraudulent practices, packaging and markings.

THE GATT continues to live as the foundation of the WTO. The 1947 agreement itself no longer exists, but its provisions were incorporated into the 1994 GATT agreement. Trade agreements should thus continue to operate during the wto`s implementation. That is why the 1994 GATT is an integral part of the WTO agreement. In 1947, the United Nations negotiated the general agreement on tariffs and trade. This contract has created a body to verify and resolve trade disputes between its members. Members continue to update the underlying contract through a series of “rounds” of negotiations. In 1947, the average tariff for large GATT participants was about 22%. [4] As a result of the first rounds of negotiations, tariffs at the heart of the GATT of the United States, the United Kingdom, Canada and Australia have been reduced relative to other contracting and non-GATT countries. [4] During the Kennedy Round (1962-67), the average level of tariffs for GATT participants was about 15%. [4] After the Uruguay Round, tariffs were less than 5%.

[4] With the reduction of tariffs, non-tariff barriers (NTBs) have attracted increasing attention as they distort trade, such as flat-rate tariffs. Non-tariff barriers consist of a series of rules, standards, standards, technical issues, administrative and bureaucratic procedures and other market-related barriers faced by exporters while trying to access a given market. The WTO is trying to highlight this area through a policy of transparency and information, but also by restrictions on the use of non-tariff barriers. Article XX of the GATT (also known as the hat clause) contains a list of ten authorized exceptions to the free trade principles set out in the agreement.