Which Of The Following Is True About The General Agreement On Tariffs And Trade (Gatt)

Which Of The Following Is True About The General Agreement On Tariffs And Trade (Gatt)

The EU`s accession to the EU, which prompted an agreement on the Lomé Convention? Answer the following questions, then tap “Send” to get your score. The GATT had three main provisions. The most important requirement was that each member be obliged to confer the status of the most favoured country on any other member. All members must be treated the same with respect to tariffs. It excluded special tariffs between members of the British Commonwealth and the Customs Union. It allowed tariffs if their removal causes serious damage to domestic producers. The fourth round returned to Geneva in 1955 and lasted until May 1956. 26 countries participated in the cycle. $2.5 billion in tariffs have been eliminated or reduced.

One of GATT`s most important achievements has been indiscriminate trade. Any GATT signatory should be treated like any other, known to be the nation`s most privileged principle and entered into the WTO. The practical result was that, once a country had negotiated a tariff reduction with some other countries (usually its major trading partners), this reduction would automatically apply to all GATT signatories. There were leakage clauses allowing countries to negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. To some extent, this view has been shared in Europe, but the process of European unification has created its own tensions, under which the Kennedy Round has sometimes become a secondary centre of gravity of the ERC. An example is the French veto on the accession of the United Kingdom in January 1963, even before the beginning of the cycle. Exceptions may be granted in the form of Article II exceptions. Members could apply for such exemptions before the agreement came into force. New derogations may only be granted to new members at the time of accession or, in the case of current members, by a derogation under Article IX:3 of the WTO agreement.

All exceptions are subject to review; they should not, in principle, last more than 10 years. In addition, the GATS allows groups of members to enter into economic integration agreements or to mutually recognize regulatory standards, certificates and others when certain conditions are met. The details of the GATT were optimized in the decades following its creation. The main objective of the continuation of the negotiations was the continuation of the reduction of tariffs. In the mid-1960s, the Kennedy Round added an anti-dumping agreement. The Tokyo Round of the 1970s improved other aspects of trade. The Uruguay round lasted from 1986 to 1994 and created the World Trade Organization. Commitments within the GATS can be divided into two broad groups: general commitments that apply to all members and service sectors, and commitments that apply only to sectors on a member`s commitment list. These obligations are defined in individual timetables, the scope of which can vary considerably from one Member State to another. The relevant terms and concepts are similar, but not necessarily identical to those of the GATT; Domestic processing is, for example, a general obligation in trade in goods and non-negotiable as in the GATS. Following the UK`s vote to leave the European Union, proponents of leaving the European Union proposed that Article 24, paragraph 5B of the treaty could be used to maintain a “stalemate” in trade conditions between the UK and the EU if the UK left the EU without a trade deal, thereby preventing the imposition of tariffs.