GATT & LIBERALISATION

GATT
• The general agreement on tariffs and trade(GATT),
The predecessor of WTO, was born in 1948 as a
result of the international desire to liberalise trade.
• The GATT was transformed into a world trade
organisation (WTO),with effect from january,1995.
• India is one of the founder members of the
IMF,world bank,GATT and the WTO
 OBJECTIVES
• Raising standard of living.
• Ensuring full employment and a large and
steadily growing volume of real income &
effective demand.
• Developing full use of the resources of the
world.
• Expansion of production & international trade.
GATT adopted following principles
1. Non-discrimination.
the principles of non-discrimination requires
that no member country shall discriminate
between members of GATT in the conduct of
international trade.
2. Prohibitation of Quantitative restriction.
it rules seeks to prohibit quantitative
restriction as far as possible and limit
restriction on trade to the less rigid tariffs.
3. Consultation
By providing a forum for continuing
consultation. It sought to resolve
disagreement through consultation.
 LIBERALISATION
• Liberalisation refers to relaxation of previous
government restrictions usually in areas of
social and economic policies.
• Liberalisation of the economy means to free it
from direct or physical controls imposed by
the government.
 advantages
1. Increase in foreign investment
2. Increase in the efficieny of foreign
investment.
3. Rise in the rate of economic growth
4. Control of price
Thank you