General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT) was signed in 1947 by 23 countries, signifying one of the first international attempts to minimize barriers to international trade.
One of the GATT's key principles was reducing trade barriers, aimed at reducing tariffs, quotas, and subsidies. This agreement contributed to the growth of international trade volumes post World Wars, driving demand for transportation, warehousing, and distribution services.
Another key obligation is non-discrimination, also known as the most-favored-nation principle. This principle required member countries to treat all trading partners equally, fostering fair competition among logistic providers.
GATT also acknowledges challenges that might arise because of tariffs being lowered. GATT permits members to take safeguard actions to suspend or restrict the flow of imports. This causes side effects such as disrupting the existing supply chains or increasing the cost of importing goods.
By facilitating negotiation and establishing the core obligations among its member countries, GATT laid the foundation for modern trade agreements today.
In 1995, GATT was adopted and absorbed into the World Trade Organization (WTO). Today, the multilateral trading system now encompasses 128 member nations dealing with virtually all manner of global commerce, including trade in services, textiles, agriculture, and the international rule for the protection of patents, trademarks, and copyrights.
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