Definition of General Agreement On Tariffs And Trade



The general agreement on tariffs and trade or GATT is an agreement between countries that are agreed upon reduced trade costs in terms of tariffs, quotas, and other trade regulations. The aim is to facilitate global trade without trade barriers between countries that are agreed on GATT.

 


The original purpose of GATT was to eliminate unfavorable rules and stricter trade conditions and restrictions imposed for maintaining control at the time of war. GAT later was refined and an organization called World trade organization (WTO) was formed to facilitate across the globe trade with favorable trade rules. The GATT also provides a framework for resolving national-level trade disputes.

 

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