GATT – Major Principles

GATT’s major principle was trade without discrimination. The participating nations opened the markets impartially to every other member. According to GATT, once a nation and its largest trade allies had agreed to reduce a tariff, that reduction automatically became applicable to all other GATT members.

●      GATT preferred protection through tariffs and by leveraging on it, GATT systematically tried to eliminate the import quotas or other quantitative trade restrictions.

●      GATT also had homogenous customs regulations and the obligation of the participating nations in negotiating for tariff reductions on any other nation’s request.

●      The escape clause was also in place for contracting nations to modify the agreements when their domestic producers suffered excessive losses due to the trade concessions.

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