Advanced English Dialogue for Business – General agreement on tariffs and trade

Listen to a Business English Dialogue About General agreement on tariffs and trade

Charlotte: Hi Thomas, have you heard about the General Agreement on Tariffs and Trade (GATT) in business and finance?

Thomas: Yes, Charlotte. GATT was a multilateral trade agreement aimed at reducing barriers to international trade and promoting economic cooperation among member countries.

Charlotte: Right, it was established in 1947 and served as the foundation for the World Trade Organization (WTO) that succeeded it in 1995.

Thomas: It’s interesting how GATT sought to liberalize trade by negotiating tariffs and trade agreements among its member countries.

Charlotte: Yes, GATT aimed to foster a more open and predictable trading system to stimulate economic growth and development.

Thomas: And GATT operated on the principle of non-discrimination, meaning that member countries couldn’t favor one trading partner over another.

Charlotte: Absolutely, the most favored nation principle ensured that any trade concessions granted to one member country had to be extended to all other members.

Thomas: It’s important to recognize the role GATT played in facilitating trade negotiations and resolving disputes among member countries.

Charlotte: Yes, GATT provided a framework for member countries to negotiate and implement trade agreements in a transparent and rules-based manner.

Thomas: And GATT helped prevent trade wars and protect the interests of smaller and developing countries in the global trading system.

Charlotte: Right, GATT’s principles of reciprocity and nondiscrimination laid the groundwork for the modern international trade regime.

Thomas: Overall, GATT was instrumental in promoting economic cooperation and stability in the post-war era.

Charlotte: Absolutely, Thomas. Its legacy continues to shape global trade policies and practices today.