What does GATT stand for?

What does GATT stand for?

• A. General Agreement on Tariffs and Trade
• B. Global Agreement on Trade and Tariffs
• C. Guide for Agricultural Trade and Taxes
• D. General Arrangement for Tariffs and Trade

Answer: (A)

The correct answer is General Agreement on Tariffs and Trade. This acronym represents an international treaty that was established to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas. GATT was created in 1947 and served as a foundational framework for global trade relations, aiming to enhance economic cooperation and facilitate smoother trade flows. The essential purpose of GATT was to encourage countries to engage in bilateral and multilateral agreements to foster trade liberalization. By providing a structured approach to negotiations and dispute resolution, GATT played a pivotal role in the development of subsequent trade agreements and institutions, ultimately leading to the establishment of the World Trade Organization (WTO) in 1995. In contrast, the other options represent variations of this concept but do not reflect the accurate definition or historical context of GATT. For instance, "Global Agreement on Trade and Tariffs" and "Guide for Agricultural Trade and Taxes" include terms that are not part of the formal title and mischaracterize the treaty's focus, while "General Arrangement for Tariffs and Trade" slightly alters the terminology without capturing the true essence of the agreement. Thus, understanding the correct expansion of GATT helps in grasping its significance in the realm of international trade.

The correct answer is General Agreement on Tariffs and Trade. This acronym represents an international treaty that was established to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas. GATT was created in 1947 and served as a foundational framework for global trade relations, aiming to enhance economic cooperation and facilitate smoother trade flows.

The essential purpose of GATT was to encourage countries to engage in bilateral and multilateral agreements to foster trade liberalization. By providing a structured approach to negotiations and dispute resolution, GATT played a pivotal role in the development of subsequent trade agreements and institutions, ultimately leading to the establishment of the World Trade Organization (WTO) in 1995.

In contrast, the other options represent variations of this concept but do not reflect the accurate definition or historical context of GATT. For instance, "Global Agreement on Trade and Tariffs" and "Guide for Agricultural Trade and Taxes" include terms that are not part of the formal title and mischaracterize the treaty's focus, while "General Arrangement for Tariffs and Trade" slightly alters the terminology without capturing the true essence of the agreement. Thus, understanding the correct expansion of GATT helps in grasping its significance in the realm of international trade.