General Agreement on Tariffs and Trade (GATT) | Practical Law

General Agreement on Tariffs and Trade (GATT) | Practical Law

General Agreement on Tariffs and Trade (GATT)

General Agreement on Tariffs and Trade (GATT)

Practical Law Glossary Item 5-525-9138 (Approx. 3 pages)

Glossary

General Agreement on Tariffs and Trade (GATT)

A multilateral trade agreement that first came into force in 1948. Currently, over 160 nations, including the US, have signed the GATT. This treaty imposes many requirements on member countries, including the obligations to:
  • Reduce tariffs and other trade barriers.
  • Treat other member countries equally regarding trade tariffs.
  • Consult with each other about trade matters.
  • Try to resolve disputes peacefully.
The original GATT has been amended various times since 1948. In 1994, it was revised to:
  • Create more trade agreements that, among other things:
    • describe the principles of trade liberalization;
    • require governments to make their trade policies transparent; and
    • address special treatment for developing countries.
  • Establish the World Trade Organization (WTO), the international regulatory body responsible for:
    • implementing the agreement and enforcing trade rules; and
    • providing a forum for negotiating future trade barrier reductions and settling disputes.
The US approved and adopted the 1994 revisions to the GATT through the Uruguay Round Agreement Act (19 U.S.C. §§ 3501 to 3624).
Additional information, including the full text of the GATT, is available on the WTO website. The WTO also maintains an updated list of GATT members on its website.