1 - Accidental Organization

Summary

This chapter explains the historical development of an internationalist conception of trade from Adam Smith to the 1930s. It then examines the establishment of GATT, initial reactions to the organization, and the early work of the secretariat. Efforts to establish what became GATT began during the war and involved British and American governments. The participation of other countries, including Australia, Canada, and India, also influenced the rules and purpose of GATT. The reaction to GATT showed that trade elicited divisive and polarized opinions, a trend that continued throughout its history. In its first few years, GATT had limited capabilities, but an effective secretariat led by Eric Wyndham White. This account revises the widely held view that British and American governments clashed over the postwar trade system. It challenges the belief that the USA created GATT. It shows that the GATT secretariat was proactive, committed to an internationalist trade agenda, and determined to maintain its independence.