The GATT, later incorporated into the ITO, can be divided into two main parts. One was the tariff negotiations themselves. The other part was the general provisions side, which dealt with nondiscrimination and MFN treatment. During the interwar years, the unprecedented levels of tariffs and other trade barriers across the world smothered world trade. Hopeful that they could reverse the trend of protectionism, the delegates at Havana incorporated the GATT’s aim “To promote on a reciprocal and mutually advantageous basis the reduction of tariffs and other barriers to trade” into the Havana Charter (Article 1.4). As a general rule, quantitative measures on import and exports were forbidden by the commercial section of the …show more content…
This shared resolve to abandon the use of trade barriers was markedly distinct from the interwar years, when one after another barrier was erected. The ITO was to usher in a new phase of thriving trade, free of tariffs and other quantitative measures.
2.2 Nondiscrimination
While the first part of the GATT helped remove trade barriers, the latter part of the GATT dictated the way countries approached commerce. In the interwar period, discriminatory trade blocs and exclusive bilateral arrangements resulted in a dramatic dip in the global volume of trade that accompanied the Great Depression. As a result, policymakers shared a strong conviction to reverse the damage of interwar bilateralism and instead pursue a stable multilateral trading systemen. The members’ unequivocal commitment to nondiscriminatory trade is encapsulated in Article 1.4 of the Havana Charter, …show more content…
One of the ITO’s pillars not mentioned in the GATT is a newfound consideration for the needs of developing countries. Since a majority of the 56 countries present at Havana were economically underdeveloped, the issue of economic development took center stage (Zeiller 138). The United States could not possibly satisfy the dichotomous needs of both the developed and underdeveloped countries. By choosing to make concessions to the underdeveloped countries and designing the Havana Charter with the needs of poor countries in mind, the United States hoped to gain the support of the underdeveloped contingent. (Toye