International trade: Identify what GATT (General Agreement on Tariffs and Trade) is. Consider its legal nature and role relative to the WTO. Choose the most accurate description.
General Knowledge
Basic General Knowledge
Difficulty: Easy
Choose an option
-
AA multilateral treaty to reduce trade barriers; predecessor to the WTO
-
BA United Nations specialized agency
-
CA regional customs union of European countries
-
DA non-governmental organization of exporters
Answer
Correct Answer: A multilateral treaty to reduce trade barriers; predecessor to the WTO
Explanation
Given data
- Term: GATT — General Agreement on Tariffs and Trade.
- Task: Identify its nature and role.
Concept/Approach GATT (effective 1948–1994) was a legal agreement among many countries aimed at reducing tariffs and other barriers to trade. In 1995, its functions were subsumed by the World Trade Organization (WTO).
Reasoning • It was not an agency of the UN, nor a regional bloc. • It served as the foundation and predecessor framework for the WTO.
Common pitfalls Confusing GATT with WTO (institution). GATT is the agreement; WTO is the organization created later to administer broader trade rules.
Final Answer A multilateral treaty to reduce trade barriers; predecessor to the WTO