The General Agreement On Tariffs And Trade (Gatt) Enshrined Which Of The Following Principles

The creation of the GATS was one of the key principles of the Uruguay Round, the results of which came into force in January 1995. The GATS was essentially inspired by the same objectives as its merchandise trade counterpart, the General Agreement on Tariffs and Trade (GATT): the creation of a credible and reliable system of international trade rules; Ensure fair and equitable treatment of all participants (principle of non-discrimination); boosting economic activity through guaranteed political ties; Promoting trade and development through gradual liberalization. At each round, each participating country proposes concessions that include a list of new customs commitments – one for each imported product. In order to achieve trade liberalization, customs obligations must be weaker than before. It is important to note, however, that there is no harmonization of customs obligations. At the end of a cycle, the signatory states do not have the same tariffs. Perhaps the most important free trade area, implemented over the last fifty years, was the European Economic Community, established in 1960 by the main countries of Western Europe and which eventually led to the creation of the European Union in 1993. The term “union” refers to the fact that the territory is now a customs union that not only encompasses the free trade in goods and services, but also allows the mobility of workers and other factors of production. In addition, some of the main European countries have gone further by creating and using the euro as a common currency, thus creating a monetary union alongside the customs union. The General Agreement on Tariffs and Trade (GATT) was never conceived as a stand-alone agreement. Instead, it should be only part of a much broader agreement to establish an International Trade Organization (ITO). The ITO should encourage trade liberalization by establishing guidelines or rules that Member States would approve. The ITO was conceived at the Bretton Woods Conference, which brought together New Hampshire`s key allies in 1944, and was seen as a complement to two other organizations that were also conceived there: the International Monetary Fund (IMF) and the World Bank.

The IMF would monitor and regulate the international fixed exchange rate system, the World Bank would assist reconstruction and development loans, and the ITO would regulate international trade. The GATT came into force on January 1, 1948. From the beginning, it was refined, which eventually led to the creation, on 1 January 1995, of the World Trade Organization (WTO), which absorbed and expanded it. To date, 125 nations signed its agreements, which covered about 90% of world trade. Transparency: GATS members are particularly solicited. , to publish all measures of general application and to set up national bodies to respond to requests for information from other members.