Gatt entered into force on 1 January 1948. Since that beginning, it has been refined and eventually led to the creation of the World Trade Organization (WTO) on 1 January 1995, which registered and expanded it. At that time, 125 nations were signatories to its agreements, covering about 90% of world trade. Gatt introduced the most-favoured-nation principle into customs agreements between members. This series of meetings and reduced tariffs would continue and new GATT provisions would be taken into account in the process. The average rate of duty rose from about 22% when gatt was first signed in Geneva in 1947 to about 5% at the end of the Uruguay Round, which ended in 1993 and also negotiated the creation of the WTO. in other words, quantitative barriers such as trade controls and quotas. The agreement also provided for a system for settling trade disputes between nations and the framework allowed for a series of multilateral negotiations aimed at removing tariff barriers. Gatt was considered an important success in the post-war years.
Most nations have applied the most-favoured-nation principle when setting tariffs, which has largely replaced quotas. Tariffs (which are preferable to quotas but still a barrier to trade) have in turn been steadily reduced in successive rounds of negotiations. One of the most important achievements of GATT has been trade without discrimination. Each signatory member of the GATT must be treated in the same way as another. This is called the most-favoured-nation principle, which has been taken up in the WTO. One of the practical results was that once a country negotiated a tariff reduction with certain other countries (usually its major trading partners), the same reduction would automatically apply to all GATT signatories. There were also alternative clauses that allowed countries to negotiate waivers if their domestic producers were particularly harmed by tariff reductions. The General Agreement on Tariffs and Trade (GATT), signed on 30 October 1947 by 23 countries, was a legislative agreement that minimized barriers to international trade by removing or reducing quotas, tariffs and subsidies, while maintaining important rules. Liberalization of world trade. .