The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement that was signed by a majority of the world`s trading nations in 1947. The agreement was aimed at liberalizing trade, reducing trade barriers, and promoting economic growth and development.
The GATT was based on several principles that guided its provisions and agreements. These principles included non-discrimination, the most-favored-nation clause, and the national treatment rule.
The principle of non-discrimination was at the core of the GATT. This principle required that all member countries treat each other equally in terms of trade. This means that a country cannot discriminate against another country`s exports or imports based on their origin or destination.
The most-favored-nation (MFN) clause was another crucial principle of the GATT. This clause required that member countries give the same trading advantages to all other member countries that they give to their most-favored trading partners. In other words, any concession granted to one country must be extended to all other member countries.
Finally, the national treatment rule required that member countries treat foreign goods and services in the same way as they treat their domestic goods and services. This principle aimed to reduce discrimination against foreign goods and services, which could hinder international trade and limit economic growth.
Overall, the GATT was based on the principles of non-discrimination, MFN, and national treatment, with the ultimate goal of promoting trade liberalization and economic growth. The GATT has since been replaced by the World Trade Organization (WTO), which has continued to uphold these same principles in its mission to promote free trade and international economic cooperation.