1) Read the material provided by Nov. 27_as per below:
My own material Â
2) Create a thread on the “Discussion Arena
Mike Response – The General Agreement on Trades and Tariff was the original agreement on how to globally regulate trade and tariffs agreed to during the Bretton Woods Conference in 1944. Â The US and the UK both anticipated the need for an international body to help expand open trade in the post War world.Historically the GATT can be seen as an economic complement to the establishment of the United Nations, as it provided the foundation for the post-World War II financial system and established two key institutions, the International Monetary Fund and the World Bank.  Â The conference also recommended the establishment of the International Trade Organization (ITO) , which they envisioned as the third leg of the system. Although enough countries supported the establishment of the ITO to include US negotiators, the U.S. Senate refused to ratify the agreement (cf. to the Senate non-ratification of the League of Nations Treaty.) Â This left the GATT committee to work as a de facto ITO until the establishment of the WTO in 1994 at the Marrakesh conference. Â The GATT helped promote open trade through approximately eight rounds of negotiation between the late 1940s and 1994.
Jack Response – GATT stands for General Agreement on Tariffs and Trade. It was originally an agreement between 23 countries to reduce trade barriers and tariffs between those countries. After WWII many countries economies were unstable. To help protect their local industries they put in place many trade barriers so their population would buy local goods. However, with everyone doing this, that also means they canâ€™t sell their goods outside of their countries. So, in 1947 GATT was formed to help resolve this problem. They would conduct meetings, known as rounds, to come to agreements they believed to be fair. They would take place roughly every 5 years and discuss ways to cut tariffs. But with nations still wanting to protect their local businesses, their came a rise in quotas. To deal with the rise in quotes they would decrease them and increase nontrade barriers like health and safety standards for products. With the agreements becoming more complex and new products entering the market the rounds became longer with fewer issues being resolved. In 1993 one of the rounds in Uruguay faced this problem. Out of it came a branch and eventually a separate system from GATT called the WTO (World Trade Organization). With this new organization they reduced trade barriers and created trade rules to follow. They also created outlines that every agreement must follow so the outcome is fair. They didnâ€™t only deal with tangible items but services and intellectual property as well. The WTOâ€™s Dispute settlement is also considered to be much faster and effective than its predecessor.