To lower trade barriers and advance global trade, 23 nations signed the General Agreement on Tariffs and Trade (GATT) on October 30, 1947. In 1995, the World Trade Organization (WTO) supplanted it as the multilateral trading system's underlying structure.
The GATT agreement was ratified on April 15, 1950, by 109 nations, including India. This was a crucial turning point in the development of global commerce. Countries saw the value of lowering trade barriers and expanding market access for goods and services, ushering in a new era of economic cooperation and progress.
It was a big accomplishment when 109 nations ratified the GATT agreement because it established a framework for trade that was based on rules and ideals rather than strength and influence. By lowering tariffs and other trade barriers and by establishing a venue for negotiation and dispute resolution, the pact aimed to promote free trade.
It was crucial that India accepted the GATT agreement since it signalled a change from its previous policies of import substitution and protectionism. India pledged to lower its tariffs and other trade restrictions in exchange for joining the GATT, which enhanced competition and created a more open economy. India's economic growth and development were subsequently boosted as a result of this as it got more integrated into the world economy.
Throughout the past 70 years, the GATT pact and the WTO that succeeded it have been instrumental in fostering global commerce and economic growth. These organisations have contributed to the development of an international trading system that is more stable and predictable by lowering trade barriers and offering a framework for negotiation and dispute resolution. Also, they have given developing nations a platform to engage in the global economy and take advantage of the opportunities that commerce can present.
In conclusion, the GATT agreement's approval by 109 nations, including India, on April 15, 1950, was a crucial turning point in the development of global commerce. It signalled the start of a new age of economic progress and collaboration based on rules and values rather than strength and clout. International commerce and economic progress have benefited greatly from the GATT pact and the WTO that it replaced, and they will continue to do so in the future.
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