GATT (General Agreement on Tariff and Trade) Precursor organization to GATT, ITO, was first proposed in February 1945 by the United Nations Economic and Social Council (UNESCO). On 1 January 1948, the agreement was signed by 23 countries for the formation of GATT. Total of 8 rounds was there, all are listed along with their respective year, venue and issues are mentioned in the sides.

1. GENERAL
AGREEMENT ON
TARIFFS &
TRADE
G
A
T
T

2. GATT
Formed in 1947.
General Agreement on Tariffs and
Trade (GATT) was a legal agreement between
many countries.
Main Objectives:-
• Reduction of barriers to international trade.
• Achieved through reduction of
• Tariff barriers,
• Quantitative restrictions.

3. PRINCIPLE
MFN Clause
Trade without Discrimination
Transparency
Reciprocity

4. Tariff
&
Non Tariff barriers

5. TARIFF BARRIERS
CUSTOM DUTY
TAXES

6. NON-TARIFF BARRIERS
LICENSES
QUOTAS

7. GATT ROUNDS
• There were total 8 rounds of negotiations
between the participating countries.
• The first 6 rounds were related to
curtailing tariff rates, 7th round included
the non-tariff obstacles.
• This 8th round known as “Uruguay
Round”.

8. Round Year Venue Issues and Outcomes
I 1947 Geneva (Switzerland) Signature on first GATT agreement
II 1949 Anesi (France) Tariff reductions on specific products
III 1950- 51 Torquay (England) Tariff reductions on specific products
IV 1956 Geneva
V (Dillion Round) 1960-61 Geneva
Induction of European Community for the
first time & 20% tariff reduction.
VI (Kennedy Round) 1964 – 67 Geneva
33% reduction is restrictions on
manufactured goods.

9. VII (Tokyo Round) 1973 – 79 Geneva Non-tariff restrictions, etc.
VIII (Uruguay
Round)
1986 – 93
Punta Del Este(Beginning in
Uruguay and closing at
Geneva)
Agriculture, Service, TRIPS, TRIMS,
related issues

10. URUGUAY ROUND
The main objectives of the Uruguay Round were:
1. To reduce agricultural subsidies
2. To lift restrictions on foreign investment
3. To begin the process of opening trade in services
like banking and insurance.
4. To include the protection of intellectual property.
Started in 1986

11. DRAFT

12. ARTHUR DUNKEL:
Director-General of the GATT during 1980-1993.
He prepared a document called “Dunkel Draft”, the draft put together the
results of negotiations and provided an arbitrated solution to issues on which
negotiators failed to agree. Even though the United States and India
continued to bargain for changes to the Dunkel Draft, only minor
amendments were made in the sphere of agriculture. The Dunkel Draft was
accepted and became the foundation of the World Trade organization.

13. CRITICISM
The following are the Criticism of GATT:-
1. Slow Dispute Settlement mechanism.
2. Formation of Regional Blocks.
3. Most develop countries took their own
Commitments Non-Seriously.
4. Negotiation Tactics
5. Un-necessarily pressuring UDC

14. CONCLUSION
Due to Inherit LOOP Holes in system of GATT later on it was
abolished and turned into WTO.

15. Difference between GATT and WTO
GATT
GATT was a provisional agreement
by contracting parties with no legal
enforcement power.
GATT only included trade in goods.
GATT had no provisions to settle trade
disputes. .
WTO
WTO is a binding permanent agreement
by members.
WTO additionally includes trade
in services, international investments
and intellectual property rights.
WTO set up a dispute settlement body
and disputes are quickly resolved.