Question

When was GATT established?
A) 1936
B) 1940
C) 1948
D) 1944

Answer 1

Hint: The General Agreement on Tariffs and Exchange (GATT) was signed by 23 countries including Canada, as an international trade agreement. After some time, GATT came into force and was perfected through eight rounds of negotiations, leading to the formation of the World Trade Organization (WTO) to replace GATT in 1995.

Complete answer:
I) A legal agreement between several countries with the ultimate goal of facilitating foreign trade, such as the removal or reduction of trade barriers such as tariffs or quotas, is a General Agreement on Tariffs and Trade.
II) It was intended "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."
III) The General Agreement on Tariffs and Trade is a legal agreement between several countries with the ultimate goal of facilitating foreign trade by reducing or removing barriers to trade, such as tariffs or quotas.
IV) GATT was signed on 30 October 1947 in Geneva by 23 nations and took effect on 1 January 1948.
V) 23 Founding members include Australia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, the Netherlands, Luxembourg, New Zealand, Norway, Pakistan, Syria, South Africa, United Kingdom and USA.
VI) GATT went into effect on 1 January 1948.

Hence, the correct answer is option ‘C’.

Note: The shortcomings of the GATT, including the presence of legal issues in particular in the fields of agriculture and textiles, were behind its failure. For example, it can be observed that under the GATT, the United States was unable to persuade Japan and China to open their markets to US goods.
GATT, a multinational organization, does not exist anymore. The World Trade Organization has now replaced it.