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What Is The General Agreement On Tariffs And Trade (Gatt)

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Among the original GATT members, Syria[19][20], Lebanon[21] and the LICO Yugoslavia have not re-joined the WTO. Given that Yugoslavia (renamed in Serbia and Montenegro and later two shared accession negotiations) is not recognised as a direct successor to the SFRY; Therefore, its application is considered new (non-GATT). On 4 May 2010, the WTO General Council decided to set up a working group to review Syria`s application for WTO membership. [22] [23] The WTO parties terminated the 1947 GATT formal agreement on 31 December 1995. Montenegro became a member in 2012, while Serbia is in the decision-making phase and is expected to become a member of the WTO in the future. The working hypothesis for collective bargaining was a linear reduction of 50% in tariffs, with the smallest number of exceptions. A long-term argument has developed about the trade effects of a uniform linear reduction on the dispersed rates (low tariffs and high rates quite far away) of the United States compared to the much more concentrated rates of the EEC, which also tended to be under the ownership of U.S. tariffs. As has already been said, in parallel with this phenomenon of blockages and regional integration, there is a tendency towards cohesion and interdependence at the global level. To support the latter process, a general agreement on tariffs and trade (GATT) was signed in 1947 by 90 countries. The aim was to encourage a more open, stable and transparent global trade regime and to combat protectionism and discrimination, in order to facilitate the wider and more efficient use of global resources on the basis of trade expansion, which would increase levels of employment, income and prosperity. The goal of the GATT was to eliminate harmful trade protectionism. Trade protectionism probably contributed to the 66% reduction in world trade during the Great Depression.

The GATT helped restore the world`s economic health after the ravages of depression and World War II. Following the UK`s vote to leave the European Union, proponents of leaving the European Union proposed that Article 24, paragraph 5B of the treaty could be used to maintain a “stalemate” in trade conditions between the UK and the EU if the UK left the EU without a trade deal, thereby preventing the imposition of tariffs. Proponents of this approach believe that it could be used to implement an interim agreement until a final agreement of up to ten years is negotiated. [25] While GATT was a set of rules agreed upon by nations, the WTO is an intergovernmental organization, with its own headquarters and staff, whose scope covers both goods traded and trade in the services sector and intellectual property rights.

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