Question

Discuss the importance of the General Agreement on Tariffs and Trade in making sure that trade is fair in the international environment.

Answer 1

General Agreement on Tariffs and Trade, also known as refers to a legal agreement between several nations whose overall objective was to promote international trade by eliminating or reducing trade barriers such as quotas or tariffs among the contracting nations. The most vital principle of GATT was to trade with each member nation without discrimination in which it opened its markets equally to every other. Another fundamental principle was providing protection through tariffs instead of imposing restrictions with import quotas or other quantitative trade barrier. GATT promoted world peace and improved communication by increasing trade among the nations; thus has lead to fairness in trade in the international environment