General Agreement on Trade and Tariff-Gatt
CONTENTS * WHAT IS GATT ? * HISTORY.. * OBJECTIVE * GATT AFTER 1986 * INDIAS BLUNDER(15TH DEC 1994) * REASON * GATT IN ACTION(ENGULFING INDIA) * PREVENTIVE MEASURES
WHAT IS GATT * GATT-General agreement on TRADE and TARRIF. * Older version of WTO. * Formed to solve the international trade disputes.
HISTORY OF GATT
Following World War II, the victor nations sought to create institutions that would eliminate the causes of war. Their principles were to resolve or prevent war through the United Nations and to eliminate the economic causes of war by establishing international economic institutions.
GATT AFTER 1986
Till 1986 it was running smoothly , there was no point of any conflict or dispute among its member countries . All members were free to abide by its rule on there will. There was no mandatory obligation or any hard and fast rule to follow.
But during 1986, European and American countries felt economic slow down and these countries were going through high recession period.
In order to counter this economic problem they arranged a meeting to bring changes in GATT. And in the next meeting of GATT members European and American countries started to make hue and cry for amendment. Finally they convinced all other members on this issue and after a long discussion a committee of 20 to 25 members was organized under the presiding of ARTHUR DUNCKEN.
A full fledged draft containing 2000 resolutions was prepared and it was given the name DUNCKEN DRAFT. Later on it was renamed to GATT AGREEMENT and from 1995 it became WTO agreement.
INDIA’S BLUNDER
Till 14th december 1994, Indian government was in no mood to sign the GATT agreement. But on 15th december 1994, it took U turn and gave its approval to the so called GATT agreement.
On being asked by media about the reason for such a big and fatal decision, the then representative of India gave a very insulting statement –
“BEGGARS HAVE NO CHOICE”.
An
WHAT IS GATT * GATT-General agreement on TRADE and TARRIF. * Older version of WTO. * Formed to solve the international trade disputes.
HISTORY OF GATT
Following World War II, the victor nations sought to create institutions that would eliminate the causes of war. Their principles were to resolve or prevent war through the United Nations and to eliminate the economic causes of war by establishing international economic institutions.
GATT AFTER 1986
Till 1986 it was running smoothly , there was no point of any conflict or dispute among its member countries . All members were free to abide by its rule on there will. There was no mandatory obligation or any hard and fast rule to follow.
But during 1986, European and American countries felt economic slow down and these countries were going through high recession period.
In order to counter this economic problem they arranged a meeting to bring changes in GATT. And in the next meeting of GATT members European and American countries started to make hue and cry for amendment. Finally they convinced all other members on this issue and after a long discussion a committee of 20 to 25 members was organized under the presiding of ARTHUR DUNCKEN.
A full fledged draft containing 2000 resolutions was prepared and it was given the name DUNCKEN DRAFT. Later on it was renamed to GATT AGREEMENT and from 1995 it became WTO agreement.
INDIA’S BLUNDER
Till 14th december 1994, Indian government was in no mood to sign the GATT agreement. But on 15th december 1994, it took U turn and gave its approval to the so called GATT agreement.
On being asked by media about the reason for such a big and fatal decision, the then representative of India gave a very insulting statement –
“BEGGARS HAVE NO CHOICE”.
An