On July 1st, 2020, the General Agreement on Traffics and Trade (GATT) came into effect. This agreement, which has been in negotiation for years, is aimed at reducing barriers to trade between countries and boosting economic growth.
The GATT is a multilateral agreement that was first signed in 1947, and it is now considered one of the most important trade agreements in modern history. The agreement has been revised several times over the years, and this latest version includes a number of new provisions that are aimed at improving international trade.
One of the main features of the GATT is the reduction of tariffs, or taxes on imports and exports. Tariffs can be a significant barrier to trade, as they increase the cost of goods and make them less competitive in foreign markets. With the GATT in place, tariffs are gradually being reduced or eliminated, making it easier for businesses to sell their products and services abroad.
Another key feature of the GATT is the creation of a dispute resolution mechanism. This mechanism is designed to help countries resolve trade disputes in a fair and impartial manner. With this mechanism in place, countries are less likely to resort to trade wars or other retaliatory measures when disputes arise.
The GATT also includes provisions aimed at promoting the development of developing countries. These provisions include measures to help these countries build their infrastructure and improve their access to foreign markets. By doing so, the GATT hopes to reduce poverty and encourage sustainable economic development in countries around the world.
Overall, the General Agreement on Traffics and Trade is an important step forward in the development of global trade. By reducing barriers to trade and promoting fair and open competition, the GATT is helping to create a more prosperous and interconnected world. While there are still challenges to be overcome, the GATT is a strong foundation upon which to build a more equitable and sustainable global economy.