Which Statements Accurately Describes the General Agreement on Tariffs and Trade (Gatt)

A) The original agreement provided for a procedure to increase tariffs on commercial goods. Gatt entered into force on 1 January 1948. Since then, it has been refined, which eventually led to the creation of the World Trade Organization (WTO) on 1 January 1995, which absorbed and expanded it. At that time, 125 countries were signatories to its agreements, which covered about 90% of world trade. B) U.S. government associates human rights issues with foreign trade policy A country can change its ties, but only after negotiations with its trading partners, which could mean compensating them for the loss of trade. One of the achievements of the Uruguay Round of multilateral trade negotiations was to increase the volume of trade under binding commitments (see table). In agriculture, 100% of products now have bound tariffs. The result of all this: a significantly higher degree of market security for traders and investors.

2. National treatment: Treat foreigners and nationals equally Goods imported and produced in the country should be treated equally at least after the entry of foreign goods into the market. The same should apply to foreign and domestic services, as well as to foreign and local trademarks, copyrights and patents. This principle of national treatment (which accords others the same treatment as their own nationals) is also found in the three main WTO agreements (Article 3 of the GATT, Article 17 of the GATS and Article 3 of the TRIPS Agreement), although the principle is applied somewhat differently in each of these agreements. One of the most important achievements of GATT has been trade without discrimination. Each signatory member of gatt should be treated as equivalent to any other. This is called the most-favoured-nation principle and it has been adopted in the WTO. In practice, it follows that once a country has negotiated a tariff reduction with other countries (usually its main trading partners), the same reduction automatically applies to all GATT signatories.

There were fallback clauses that allowed countries to negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. Since the creation of GATT in 1947-48, there have been eight rounds of trade negotiations. A ninth round of the Doha Development Agenda is under way. These initially focused on reducing customs duties (tariffs) on imported goods. As a result of the negotiations, tariffs on industrial products had fallen steadily to less than 4% by the mid-1990s. Open markets can be beneficial, but it also requires adjustment. WTO agreements allow countries to make gradual changes through progressive liberalization. Developing countries generally have a longer period of time to meet their obligations. (These are tariff items, so the percentages are not weighted by the volume or value of trade.) 1.

Most-favoured-nation treatment: treating others equally Under WTO agreements, countries cannot normally discriminate between their trading partners. Give someone a special favor (for example. B a lower rate of duty on one of its products), and you must do the same for all other WTO Members. More than three-quarters of WTO members are developing countries and countries in transition to a market economy. During the seven-and-a-half years of the Uruguay Round, more than 60 of these countries have autonomously implemented trade liberalization programmes. At the same time, developing countries and countries with economies in transition have been much more active and influential in the Uruguay Round negotiations than in any previous round, and they are even more so in the current Doha Development Agenda. The General Agreement on Tariffs and Trade (GATT), signed by 23 countries on October 30, 1947, was a legal agreement that minimized barriers to international trade by eliminating or reducing quotas, tariffs and subsidies while maintaining significant regulation. Gatt aimed to stimulate economic recovery after World War II by rebuilding and liberalizing world trade. The system also attempts to improve predictability and stability in other ways. One way is to prevent the use of quotas and other measures to limit import volumes, as quota management can lead to more bureaucracy and accusations of unfairness. Another is to make countries` trade rules as clear and public (transparent) as possible. Many WTO agreements require governments to publicly disclose their policies and practices in the country or by notifying the WTO.

Regular monitoring of national trade policy through the Trade Policy Review Mechanism is another way to promote transparency at the national and multilateral levels. C) He created an agency to serve as a watchdog on world trade. C) Imposing trade embargoes on Cuba due to widespread political instability in the country Most countries have adopted the most-favoured-nation principle by setting tariffs that have largely replaced quotas. Tariffs (better than quotas, but which remain a barrier to trade) have been steadily reduced in successive rounds of negotiations. Percentage of tariffs incurred before and after the 1986-94 talks (D) in the United States. . . .