General Agreement on Tariffs and Trade (Gatt) Is a Source of Global Governance
General Agreement on Tariffs and Trade (GATT) was established in 1947 with the primary aim of promoting global trade by reducing trade barriers and increasing cooperation between member countries. Over the years, GATT has played a major role in the global governance system, promoting economic growth and ensuring the smooth flow of goods and services across borders.
One of the key achievements of GATT is the reduction of trade barriers. The organization has played a major role in negotiating and implementing trade agreements between member countries, which have helped to remove trade restrictions and promote fair competition. The reduction of trade barriers has helped to increase the volume of global trade, leading to economic growth and development.
Another significant contribution of GATT to global governance is the establishment of a dispute settlement mechanism. In the past, disputes between member countries on trade-related issues were often resolved through unilateral actions such as trade embargoes or retaliatory measures. However, with the establishment of the dispute resolution mechanism, which is now operated by the World Trade Organization (WTO), disputes are now resolved through a legal process, which promotes fair and equitable resolution.
GATT has also played a significant role in promoting the principles of non-discrimination and transparency in global trade. By promoting transparency in trade policies, member countries are held accountable for their actions and are encouraged to act in good faith in their trade relations with other countries. The principle of non-discrimination ensures that countries are not treated differently based on their economic or political status, which promotes fair competition and prevents unfair trade practices.
In conclusion, the General Agreement on Tariffs and Trade (GATT) has been a critical source of global governance, promoting economic growth and ensuring fair trade practices among member countries. Through its mechanisms for reducing trade barriers, dispute resolution, and promoting non-discrimination and transparency in global trade, GATT has played a vital role in shaping the global trading system and promoting global economic development.