GATT Principles and the Evolution of the Global Monetary System
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GATT: Characteristics
- Provisional: Born with the hope of ratifying the Havana Charter.
- Flexibility: The agreement has adapted to circumstances and trade problems at every moment.
- Pragmatism: A trade agreement where rules are interpreted with ease. Parties have reached negotiated solutions, avoiding the politicization of conflicts.
- Limits: A legal instrument agreed upon between sovereign States.
GATT: Principles
- Most-Favored-Nation (MFN): Every member must treat every other member as it treats its most-favored trading partner.
- Equal Treatment: Imports are given similar treatment in the domestic market as domestically produced goods. This principle prevents counteracting the benefits of the MFN principle.
- General and Progressive Reduction of Tariffs: