General Agreement on Tariffs and Trade(GATT)

Law

Legal Definition of General Agreement on Tariffs and Trade 

integrated set of bilateral trade agreements aimed at the abolition of quotas and the reduction of tariff duties among the contracting nations. By the late 20th century, more than 90 nations were signatories to GATT. GATT includes a long schedule of specific tariff concessions for each contracting nation, representing tariff rates that each country has agreed to extend to others. It also sets forth general rules that are, in effect, a code of commercial policy. They provide for unconditional most-favored-nation clauses, the elimination of quotas and other quantitative trade restrictions, uniform customs regulations, and the obligation of each contracting nation to negotiate for tariff cuts upon the request of another. An escape clause allows contracting countries to alter agreements if their domestic producers suffer excessive losses as a result of trade concessions. Countries that are members of a customs union or free-trade area are permitted to grant preferential tariff rates to each other.

Learn More about General Agreement on Tariffs and Trade

Share General Agreement on Tariffs and Trade

Resources for General Agreement on Tariffs and Trade

Comments on General Agreement on Tariffs and Trade

What made you want to look up General Agreement on Tariffs and Trade? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

amusing and light sparring with words

Get Word of the Day daily email!

Test Your Vocabulary

Late Autumn 2018 Words of the Day Quiz

  • frosted-autumn-leaves
  • Which is a synonym of yahoo?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Bee Cubed

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!