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General Agreement on Tariff and Trade (GATT) was established in 1948, after the conclusion of WWII. The primary objective of GATT was to promote international trade by reducing barriers like tariffs, quotas, and subsidies in a non-discriminatory way. GATT was replaced by the World Trade Organization (WTO) in 1995, but GATT principles continue to influence international trade.

GATT established a set of rules for trade between member nations. One of the key principles of GATT was the General Most-Favored-Nation (MFN) Treatment, which required member countries to treat all other members equally. This principle helped prevent trade wars and promote globalization.

Another important aspect of GATT was the reduction of tariffs. Member countries were required to reduce tariffs on imported goods and make progress toward the goal of free trade. GATT also allowed member countries to negotiate tariff reductions on specific products through bilateral agreements.

GATT also facilitated international trade by working to eliminate non-tariff barriers like quotas and subsidies. Quotas limit the amount of a specific product that can be imported into a country. Subsidies provide financial assistance to domestic businesses, making their products cheaper than imported products. GATT aimed to reduce or eliminate these barriers to promote free trade.

One of the key achievements of GATT was the negotiation of the Uruguay Round, which resulted in the creation of the WTO. The WTO is responsible for continuing the work of GATT in promoting international trade. The WTO has expanded on GATT principles by including services and intellectual property in its agreements.

In conclusion, the establishment of GATT in 1948 was a landmark moment in international trade. GATT helped reduce trade barriers, promote international trade, and prevent trade wars. While it has been replaced by the WTO, GATT principles continue to influence international trade today.