The General Agreement on Tariffs and Trade (GATT), the foundation of the World Trade Organization (WTO), is founded.

The General Agreement on Tariffs and Trade (GATT) was an international trade treaty established in 1947 with the goal of promoting free trade by reducing or eliminating trade barriers such as tariffs, quotas, and subsidies. Signed by 23 countries in Geneva, Switzerland, GATT laid the foundation for the modern multilateral trading system, aiming to stimulate economic recovery after World War II and foster international cooperation in trade. GATT governed international trade relations from 1948 until 1995, when it was replaced by the World Trade Organization (WTO).

Key Objectives and Principles of GATT:
GATT was designed to facilitate global trade and economic growth by ensuring that trade policies were transparent, non-discriminatory, and predictable. Its main objectives included:

Trade Liberalization: Reduce tariffs and other barriers to trade, making it easier for countries to export and import goods. This was aimed at promoting economic growth and improving standards of living worldwide.

Non-Discrimination: Establish the Most-Favored-Nation (MFN) principle, which ensured that any trade advantage granted to one GATT member must be extended to all other members. This principle aimed to prevent discriminatory trade practices and create a level playing field.

Transparency: Encourage countries to make their trade policies and tariffs publicly known, reducing uncertainty and facilitating smoother trade relations.

Dispute Resolution: Provide a framework for resolving trade disputes among countries to prevent conflicts and ensure fair practices. This encouraged cooperation and stability in international trade.

Economic Recovery and Stability: GATT was established in the aftermath of World War II to help countries recover economically, reduce poverty, and promote peace through mutual economic dependence and cooperation.