The GATT established a multilateral framework for reducing global tariffs, cutting average rates from 22% in 1947 to 5% by 1999, and laid the groundwork for the WTO.
Key Facts
- Signing nations
- 123 countries
- Date signed
- 30 October 1947
- Provisional application began
- 1 January 1948
- Average tariff rate in 1947
- 22 %
- Average tariff rate after Uruguay Round
- 5 %
- Superseded by WTO
- 1 January 1995
By the Numbers
Location
Cause → Event → Consequence
Following World War II, negotiating governments sought to create the International Trade Organization to regulate global commerce. When those negotiations failed, participating nations pursued a more limited multilateral agreement to reduce tariffs and trade barriers, building on discussions at the United Nations Conference on Trade and Employment.
On 30 October 1947, 123 nations signed the General Agreement on Tariffs and Trade in Geneva, committing to the substantial reduction of tariffs, elimination of trade preferences, and removal of quotas on a reciprocal basis. The agreement was applied provisionally beginning 1 January 1948 and governed international trade for nearly five decades.
The GATT remained in force until 1 January 1995, when it was succeeded by the World Trade Organization following the Uruguay Round Agreements signed in Marrakesh in April 1994. Average tariffs among major participants fell from approximately 22% in 1947 to around 5% by 1999, and the original GATT 1947 text continues to operate within the WTO legal framework.
Political Outcome
A binding multilateral trade framework was established, reducing tariffs and trade barriers among signatory nations; it remained in effect until replaced by the WTO in 1995.
Fragmented national trade policies with high tariffs averaging 22% and no binding multilateral trade regime
A rules-based international trade order under GATT, later institutionalised in the WTO from 1995