The GATT has introduced the principle of the most favoured nation into members` collective agreements. The goal of the GATT was to eliminate harmful trade protectionism. Trade protectionism probably contributed to the 66% reduction in world trade during the Great Depression. The GATT helped restore the world`s economic health after the ravages of depression and World War II. The General Agreement on Tariffs and Trade (GATT), signed on 30 October 1947 by 23 countries, was a legal agreement to minimize barriers to international trade by eliminating or reducing quotas, tariffs and subsidies, while maintaining important rules. The GATT is expected to stimulate economic recovery after the Second World War through the reconstruction and liberalization of world trade. As you know, tariffs are taxes that governments impose on imported goods for a variety of reasons. These include protection of sensitive industries for humanitarian reasons and protection from dumping. Traditionally, tariffs have often been used as a political instrument to protect certain economic, social and cultural interests. The GATT process consisted of negotiating an agreement to remove trade barriers, signing the agreement, stopping for a period of time, and then starting negotiations on the next agreement. The roundtables at GATT and now at the WTO are presented in Table 1. Keep in mind that the first gatt negotiations were relatively short, focused on a small number of countries and focused almost exclusively on tariff reductions. However, since the 1970s, trade negotiations have lasted for years, with the participation of a large number of countries and a wider range of topics.
The GATT was created to create rules to end or limit the most costly and undesirable features of the pre-war period, namely quantitative barriers to trade such as trade controls and quotas. The agreement also provided for a system for resolving trade disputes between nations and the framework allowed for a series of multilateral negotiations on the removal of customs barriers. The GATT was considered a major success in the post-war years. The sixth round of GATT multilateral trade negotiations, which took place from 1964 to 1967. It was named after U.S. President John F. Kennedy in recognition of his support for the reformulation of the U.S. trade agenda, which culminated in the Trade Expansion Act in 1962.
This legislation has given the president the greatest bargaining power of all time. The Uruguay cycle began in 1986. It was the most ambitious cycle to date that hoped to extend GATT`s jurisdiction to important new areas such as services, capital, intellectual property, textiles and agriculture. 123 countries participated in the cycle. The Uruguay Round was also the first round of multilateral trade negotiations in which developing countries played an active role.  When the Dillon cycle went through the laborious process of collective bargaining, it became clear, well before the end of the cycle, that a more comprehensive approach was needed to address the challenges ahead following the creation of the European Economic Community (EEC) and EFTA, as well as the re-emergence of Europe as a major international distributor in general.