Researched
Global Trade Rules (GATT, WTO)
GATT (1947) and the WTO (1995) give states shared rules on tariffs and trade disputes; average tariffs of the major economies fall from about 22% in 1947 to under 5%.
Open in the interactive tree →Twenty-three states signed the General Agreement on Tariffs and Trade in Geneva on 30 October 1947 as a stopgap after the planned International Trade Organization collapsed. Successive rounds cut tariffs step by step, and the Uruguay Round (1986-94, 123 countries) created the World Trade Organization on 1 January 1995 with a binding dispute system. The WTO has 166 members covering over 98% of world trade, but its appeals body has been unable to hear cases since 2019 because the US blocks new appointments.
Prerequisites
- Economics1776Rests on the case for free trade from Ricardo's comparative advantage.
- Bretton Woods, IMF, World Bank1944Meant as the trade pillar beside the IMF and the World Bank.
Unlocks
- Global CoordinationopenThe WTO is one of few binding, enforceable systems between states, and its appeals body is blocked.