Introduction

Summary

At a conference in the Palais des Nations, in Geneva, Switzerland, representatives of 23 countries met from April to October 1947 and established two key pillars of the postwar world trading system. First, they created a legal framework for commercial policy by finalizing the text of the General Agreement on Tariffs and Trade (GATT). Second, the Geneva participants negotiated numerous bilateral agreements to reduce import tariffs, the benefits of which were extended to other GATT parties through the unconditional most-favored nation (MFN) clause. As a result, this landmark meeting produced a framework for postwar commercial relations in which governments agreed to rules about the use of certain trade barriers and to negotiate tariff reductions with one another. This system of multilateral cooperation has proven to be an enduring regime under which international trade has flourished for over half a century.

This book examines the origins of the GATT. There are many studies of the GATT from legal and economic perspectives, but relatively few that examine how the GATT emerged from the ashes of World War II. The goal of our study is to appreciate the original goals and intentions of its founders by reviewing the diplomatic history that gave rise to this remarkable agreement, and to understand why the GATT took the particular shape and form that it did, in terms of the various provisions included in or excluded from the text.