GATT Trade Agreement

About GATT Trade Agreement

The General Agreement on Tariffs and Trade was signed in 1947 by 23 countries. GATT established a framework for reducing tariffs through multilateral negotiations. Eight rounds of negotiations progressively reduced tariffs. The Kennedy Round 1964 to 1967 cut tariffs by approximately 35 percent. The Tokyo Round 1973 to 1979 reduced tariffs further and addressed non tariff barriers. The Uruguay Round 1986 to 1994 was the most ambitious, creating the World Trade Organization and extending trade rules to services and intellectual property. Average tariff rates fell from approximately 22 percent in 1947 to under 5 percent by 2000. GATT transformed the world economy, enabling the post war boom in international trade. GATT was replaced by the WTO in 1995.