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CHAPTERII
GATT/WTOintheProcessofReduction
theInternationalTradeBarriers
1.GeneralAgreementofTariffsandTrade(GATT)
andtheGlobalTradeOrder
Atthebeginningofthetwentyfirstcentury,thegovernmentsofparticularstates,
participantsintheworldeconomy,havebeenstillfacingtheproblemofdefining
generalprinciplesoftheworldcompetition.GeneralAgreementonTariffsand
Trade(GATT)wasestablishedjustforthatpurpose,althoughtheeconomic
situationnowadaysiscompletelydifferentfromthatwhichexistedfiftyyears
ago.OnOctober30,1947,twentythreecountriesfoundedGATTinGeneva.That
organisationwasformedwithintheframeworkofthePreparatoryCommittee
fortheHavanaConferenceonestablishingtheInternationalTradeOrganisation
(ITO).Temporarily(thatis,untilITOhasbeenestablished)therulesofGATT
wereputintoeffectonthebasisoftheprotocolvalidfromJanuary1st,1948.
ITO,however,wasneverestablishedandconsequentlyGATT,asaninternational
agreement,assumedthecharacterofapermanentorganisation(Dunkel,1987).
ThefundamentalaimofGATTwastosupportandregulateopentrade,based
ontrulylegible,clearandstablerulesresultingfromtheprinciplesofhonest
competitionandfromthebalanceofmutualrightsandobligations.
AsidefromitsstrongpointsGATTalsohaditsweaknesses.Itdealtprimarily
withtheproblemsofcustomsdutiesdecreaseandthereductionofnon-tariff
measuresinaninternationaltrade.ArticleIofGATTstatedthatincaseof
customsdutiesandothercustomsformalitiestheparticipantstateswillapply
themostfavourednation(MFN)clause.ArticleVdeclaredfreedomoftransit
acrosstheterritoryofeachparticipatingcountryandmadethegoodsfreeof
customsandtransitcharges.ArticleVIIrelatedtotheevaluationofgoodsfrom
thepointofviewofcustomsduties.Itdefines,forallparticipatingcountries,
thegeneralprinciplesofdeterminingthecustomsvalueofagivencommodity.
ArticleXXIVdefinedtheprinciplesthatshouldbetakenintoaccountbythe
countriesparticipatinginGATTwhileestablishingcustomsunionsandfreetrade
