[PDF Notes] What are the Fundamental Principles of GATT?

The ultimate aim of GATT is the establishment of a free multilateral trading system and liberalisation of international trade through removal of discrimination in international trade and reduction in trade barriers.

For the achievement of this objective, GATT has adopted the following fundamental principles. These principles forbid unfair trade practice and set a code of conduct for the participants.

(i) Trade should be on non-discriminatory basis.

(ii) Quantitative restrictions on trade are prohibited.

(iii) Settlement of trade disputes should be achieved through consultations within the framework of GATT.

(iv) Tariff reductions are to be accomplished in a series of multilateral negotiations, or GATT rounds.

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