What does GATT stand for in international trade?

What does GATT stand for in international trade?

• A. Global Agreement on Trade and Tariffs
• B. General Agreement on Tariffs and Trade
• C. Global Alliance for Trade Transactions
• D. General Association for Tariffs and Trade

Answer: (B)

The correct expansion of GATT is "General Agreement on Tariffs and Trade." This agreement was established in 1947 and played a significant role in promoting international trade by reducing trade barriers such as tariffs and advocating for fair trade practices. GATT aimed to create a framework for multilateral trade negotiations and served as a foundational element in the establishment of the World Trade Organization (WTO) in 1995, which further institutionalized trade agreements worldwide. The terminology involved in GATT emphasizes its focus on tariffs specifically, rather than being a general agreement about trade, which is evidenced by the inclusion of "Tariffs" in its name. Understanding the role of GATT is crucial for grasping how international trade frameworks evolved and for recognizing the ongoing discussions about trade liberalization and regulation today.

The correct expansion of GATT is "General Agreement on Tariffs and Trade." This agreement was established in 1947 and played a significant role in promoting international trade by reducing trade barriers such as tariffs and advocating for fair trade practices. GATT aimed to create a framework for multilateral trade negotiations and served as a foundational element in the establishment of the World Trade Organization (WTO) in 1995, which further institutionalized trade agreements worldwide.

The terminology involved in GATT emphasizes its focus on tariffs specifically, rather than being a general agreement about trade, which is evidenced by the inclusion of "Tariffs" in its name. Understanding the role of GATT is crucial for grasping how international trade frameworks evolved and for recognizing the ongoing discussions about trade liberalization and regulation today.