General agreement on tariffs and trade objectives, commonly referred to as GATT objectives, are a set of guidelines and principles that aim to ensure fair and open international trade. The GATT was created in 1947, and it has been updated multiple times over the years to reflect changes in the global economy and international trade.
The primary objective of GATT is to create a level playing field for international trade by reducing tariffs and removing other barriers to trade. This goal is achieved through a series of negotiations and agreements between member countries, which are designed to promote free trade, eliminate discrimination, and encourage the exchange of goods and services.
One of the key principles of GATT is the most favored nation principle. This principle ensures that each member country is treated equally, regardless of its economic size or political influence. This means that if one country agrees to lower its tariffs or remove trade barriers for another country, it must do the same for all other member countries.
Another important principle of GATT is the national treatment principle. This principle ensures that imported goods are treated in the same way as domestically produced goods. This helps to prevent discrimination against foreign goods and promotes fair competition in the international marketplace.
GATT also aims to eliminate quotas and restrictions on trade. By doing so, member countries can enjoy the benefits of increased trade, including lower prices, increased competition, and greater access to new markets. This, in turn, promotes economic growth and development for both developed and developing countries.
Overall, the general agreement on tariffs and trade objectives are crucial for promoting fair and open international trade. By reducing tariffs, eliminating trade barriers, and promoting free trade, GATT helps to create a level playing field in the global economy. As such, it is an essential framework for promoting economic growth and development around the world.