The General Agreement on Tariffs and Trade, commonly referred to as GATT, is a multilateral agreement that was established in 1947 to promote international trade and reduce barriers to trade. GATT was signed by 23 countries and is considered one of the most significant achievements in the history of international trade.

The primary aim of GATT was to promote free trade by reducing tariffs and eliminating trade barriers between member countries. The agreement aimed to ensure that goods and services could be traded freely between countries without restrictions or discrimination.

GATT was based on a set of principles that included the Most Favored Nation (MFN) principle and the National Treatment principle. The MFN principle ensured that all member countries were treated equally, regardless of their size or economic power. This principle meant that any preferential treatment given to one member country must also be extended to all other members.

The National Treatment principle ensured that foreign goods and services were treated the same as domestic goods and services. This principle prevented member countries from unfairly discriminating against imports.

Throughout the years, GATT underwent significant changes and evolved into the World Trade Organization (WTO) in 1995. The WTO is responsible for overseeing and enforcing international trade agreements between member countries.

GATT and the WTO have had a significant impact on the world economy, promoting free trade and reducing trade barriers. The WTO has negotiated various agreements that have led to the reduction of tariffs and the removal of barriers to trade in areas such as agriculture, services, and intellectual property.

Despite the success of GATT and the WTO, there have been criticisms, particularly from developing countries, that the agreements have benefited wealthy countries more than poorer countries. Critics have argued that the agreements have led to the exploitation of developing countries by promoting free trade without addressing the power imbalances between wealthy and poorer countries.

In conclusion, GATT was a significant agreement that aimed to promote free trade and reduce trade barriers between member countries. It evolved into the WTO, which continues to play a crucial role in facilitating international trade. While there have been criticisms of the agreements, they have led to significant economic benefits and helped promote a more interconnected global economy.