ROUNDS OF NEGOTIATION OF GATT AND WTO

General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international
trade. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade
barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis." It was
negotiated during the United Nations Conference on Trade and Employment and was the outcome of the
failure of negotiating governments to create the International Trade Organization (ITO). GATT was
signed by 23 nations in Geneva on October 30, 1947 and took effect on January 1, 1948. It lasted until the
signature by 123 nations in Marrakesh on April 14, 1994 of the Uruguay Round Agreements, which
established the World Trade Organization (WTO) on January 1, 1995.
The original GATT text (GATT 1947) is still in effect under the WTO framework, subject to the
modifications of GATT 1994

GATT Rounds:
Between 1947 and 1995 there were 8 rounds of negotiations between the participating countries. The first
6 rounds were related to curtailing tariff rates, 7th round included the non-tariff obstacles.
The 8th round was entirely different from the previous rounds because it included a number of new
subjects for consideration. This 8th round known as Uruguay Round became most controversial. The
discussions at this round only gave birth to World Trade Organization (WTO).

GATT Rounds:
Round

Year

Venue

Issues and Overcomes

1947

Geneva

1949

Annency, France

1950-51

Torquay, England

Tariff reductions on specific products

1955-56

Geneva

Induction of European Community for the first time

& 20% tariff reduction.

1960-62

Geneva

Reductions in bilateral tariffs. EEC talks begin.

1964-1967

Geneva

Signature on first GATT agreement

Tariff reductions on specific products

33% reduction is restrictions on manufactured goods

1973-1979

Geneva

Non-tariff restrictions, etc.

1986-1993

Punta Del
Este(Beginning in
Uruguay and closing
at Geneva)

Agriculture, Service, TRIPS, TRIMS, related issues

9.

1995

--

WTO was formed

GATT
GATT can be divided into three phases:
The first phase, from 1947 until the Torquay Round, largely concerned with which all commodities
would be covered by the agreement and freezing existing tariff levels.
The second phase, encompassing three rounds, from 1959 to 1979, focused on reducing tariffs.
The third phase, consisting only of the Uruguay Round from 1986 to 1994, extended the agreement fully
to new areas such as intellectual property, services, capital, and agriculture. Out of this round the WTO
was born.
Rounds GATT held a total of 8 rounds:
Geneva Round - 1947 :
The first round took place in 1947 in Geneva. 23 countries participated. The main focus of the round was
tariff concessions, around 45,000 in total. Annecy Round 1950 :The second round took place in 1949
in Annecy, France. 13 countries participated. The main focus of the talks was more tariff reductions,
around 5000 in total.
Torquay Round 1951 :
The third round occurred in Torquay, England in 1951. 38 countries participated. 8,700 tariff concessions
were made.

Geneva Round - 1955-1956 :

The fourth round returned to Geneva in 1955 and lasted until May 1956. 26 countries participated. $2.5
billion in tariffs were eliminated or reduced.
Dillon Round - 1960-1962 :
The fifth round occurred once more in Geneva and lasted from 1960 to 1962. The talks were named after
U.S. Treasury Secretary and former Under Secretary of State, Douglas Dillon, who first proposed the
talks. 26 countries participated. Along with reducing over $4.9 billion in tariffs, it also yielded discussion
relating to the creation of the European Economic Community(EEC).
Kennedy Round - 1964-1967 :

The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late
US President Kennedy. 66 countries participated. Concessions were made on $40 billion worth of tariffs.
Tokyo Round - 1973-1979 :
Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff
barriers and voluntary export restrictions. 102 countries participated. Concessions were made on $190
billion worth.
Uruguay Round - 1986-1993 :
The Uruguay Round began in 1986. 125 countries participated. It was the most ambitious round to date,
hoping to expand the competence of the GATT to important new areas such as services, capital,
intellectual property, textiles, and agriculture
. The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay
Round was released on 20th December 1991.
The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed
the Final Act on April 15th 1994 at Marrakesh (Morocco).
Thus, the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement, finally
emerged as the World Trade Organization (WTO) in 1995. Why GATT conve

To remove this deadlock Mr. Arthur Dunkel, Director General of GATT, compiled a very detailed
document, popularly known as Dunkel Proposals. This proposal culminated into the Final Act on
December 15, 1993. India signed this proposal on April 15, 1994. All 124 members the countries signed
on this agreement.