The World Trade Organization

General Agreement on Tariffs and Trade (GATT)

From 1948 to 1994, the General Agreement on Tariffs and Trade (GATT) provided the rules for much of world trade and presided over periods that saw some of the highest growth rates in international commerce. It seemed well-established, but throughout those 47 years, it was a provisional agreement and organization.

The Tokyo Round

The Tokyo Round lasted from 1973 to 1979, and continued GATT’s efforts to progressively reduce tariffs. The results included an average one-third cut in customs duties in the world’s nine major industrial markets. The tariff reductions, phased in over a period of eight years, involved an element of “harmonization” — the higher the tariff, the larger the cut.

The Uruguay Round

The Uruguay Round took place in September 1986, in Punta del Este, Uruguay and brought about the biggest reform of the world’s trading system. The Round came into effect in 1995 leading to the creation of the World Trade Organization (WTO), with GATT remaining as an integral part of the WTO agreements.

The Marrakesh Agreement

The Agreement Establishing the World Trade Organization, commonly known as the "Marrakesh Agreement", was signed in Marrakesh, Morocco, on April 15, 1994, at the conclusion of the Uruguay Round of Multilateral Trade Negotiations. This Agreement defines the scope, functions and structure of the World Trade Organization (WTO).