j$k5309024j$k

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement among countries aimed at reducing tariffs and other barriers to free trade. It was initiated in 1947 and was replaced by the World Trade Organization (WTO) in 1995. The creation of GATT was closely linked to the Bretton Woods Conference of 1944, which established the International Monetary Fund and the International Bank for Reconstruction and Development (now part of the World Bank).

At the Bretton Woods Conference, delegates from 44 countries met to design a post-World War II international monetary system. They agreed to peg currencies to the US dollar, which itself was pegged to gold. This system was meant to promote economic stability and growth, but it eventually broke down in the 1970s when the US was no longer able to maintain the gold peg.

The GATT was designed to complement the monetary system established at Bretton Woods by removing trade barriers and promoting international cooperation. Its primary objective was to reduce tariffs, but it also addressed other issues such as subsidies, anti-dumping measures, and intellectual property rights.

Over the years, the GATT went through several rounds of negotiations, each aimed at further liberalizing trade and increasing economic integration. The most significant of these rounds was the Uruguay Round, which concluded in 1994 and led to the creation of the WTO. The WTO replaced the GATT as the primary organization responsible for regulating international trade.

The GATT and Bretton Woods Conference were instrumental in shaping the post-World War II global economic order. They established a framework for international cooperation and reduced trade barriers, which in turn promoted greater economic growth and prosperity. However, the system has faced criticism in recent years for its perceived negative impacts, including the loss of jobs in developed countries and the exploitation of workers in developing countries.

Overall, the GATT and Bretton Woods Conference represent a key milestone in the history of international cooperation and free trade. While their impact may be debated, there is no denying that they shaped the global economic landscape in profound ways.