Explain, General Agreement on Tariff and Trade (GATT) and Uruguay Round of Negotiations.

The General Agreement on Tariff and Trade (GATT) was established in 1948 in Geneva to pursue the objective of free trade in order to encourage growth and development of all member countries. The principal purpose of GATT was to ensure competition in commodity trade through the removal of trade barriers. The first seven rounds of negotiations conducted under GATT were aimed at stimulating international trade through reduction in tariff barrier and also by reduction in non-tariff restrictions in imports imposed by member countries.

The 8th round of multi-lateral trade negotiations, popularly known as Uruguay Round, could not be completed because of differences in participating countries on certain critical areas. In order to solve this problem, Mr. Aruthur Dunkel, Director General of GATT compiled a very detailed document known as Dunkel Proposal. 117 nations signed it on April 15,1994. The achievements of Uruguay Round was the decision to set up a permanent and free trade among nations namely World Trade Organisation WTO with effect from 1st Jan 1995.