What Is the Full Form of GATT in Business?

The Full Form of ‘GATT’ in Business is ‘General Agreement on Tariffs and Trade’.

Full Form of GATT

GATT, or the General Agreement on Tariffs and Trade, is an international agreement that was first signed in 1947 to promote global trade. The agreement focused on reducing tariffs and other trade barriers among member countries, making it easier for goods and services to be exchanged across borders.

GATT was a major step forward in creating a worldwide system of free trade. It was intended to help stimulate economic growth by increasing global competition and reducing the cost of doing business internationally. The rules set out in GATT were designed to create a level playing field between signatory countries, both large and small.

Before GATT was signed, tariffs were often used as a way of protecting local industry from foreign competition. By removing these restrictions, GATT made it easier for companies to enter new markets without worrying about unfair taxes or regulations that could make them less competitive than their overseas rivals. This helped increase global competition and allowed companies to benefit from economies of scale by producing more products at lower prices.

The GATT agreement also included provisions for resolving disputes between countries over trading activities. This was done through the establishment of the World Trade Organisation (WTO) which replaced GATT in 1995. The WTO has since taken on many of the roles previously held by GATT including overseeing negotiations between countries, settling disputes between countries over trading issues, providing technical assistance to developing nations, and helping to ensure compliance with international trading standards.

Over time, GATT’s original focus on reducing tariffs has shifted towards broader objectives such as promoting sustainable development and protecting intellectual property rights. This has led to further negotiations under the WTO which have resulted in further liberalisation of global trade rules including increased access for developing countries into more advanced markets such as those in Europe and North America.

Today GATT remains an important part of international trade agreements that are designed to reduce barriers while encouraging free flow of goods and services between nations around the world. By establishing a framework for fair competition among signatories, GATT has helped bring down costs while stimulating economic growth globally – something that would not have been possible without this agreement being in place.

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