International Trade Law: Main Features of GATT

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What was the initial focus of the negotiating rounds under the General Agreement?

Reduction of non-tariff barriers

Settling trade disputes

Tariff reductions (correct)

Expansion of trade in services

What was the average tariff rate for major industrialized countries at the end of World War II?

Around 5%

Around 10%

Around 20%

Around 40% (correct)

Which of the following is a shortcoming of GATT as stated in the text?

Successful negotiation rounds

Limited applicability of the agreed-upon rules (correct)

High growth rate of world merchandise trade

Formal organizational structure

What has the GATT system been credited with considerable success in removing?

Barriers to trade in goods Signup and view all the answers

What is one notable effect of GATT's success in reducing average tariffs?

Exceeded the growth in national economies Signup and view all the answers

What was a significant problem regarding the tariff lines bound by developing countries?

They had bound relatively few of their tariff lines. Signup and view all the answers

How did agriculture and clothing and textiles differ from other products in terms of GATT disciplines?

They were less effectively bound by GATT disciplines. Signup and view all the answers

How did parties accomplish safeguard goals despite ignoring the rules for imposing safeguard measures?

Through the use of voluntary export restraints that were of questionable legality under GATT rules. Signup and view all the answers

What was the impact of the breakdown in the application of agreed-upon rules on GATT as a trading system?

It undermined the idea of GATT as a rule-based multilateral trading system. Signup and view all the answers

What was a problem apparent in the functioning of GATT’s dispute settlement system?

Considerable delays in various parts of the process. Signup and view all the answers

Which principle is not one of the main principles of GATT according to the text?

Principle of monopolization. Signup and view all the answers

What are the main objectives of the General Agreement on Tariffs and Trade (GATT) as mentioned in the text?

Increasing the standard of living, realizing full employment, and increasing production. Signup and view all the answers

What was the General Agreement between nations from 1948 until the advent of the WTO?

The principal international agreement regulating trade between nations. Signup and view all the answers

What was included in GATT 1994 according to the text?

GATT of 1947 and all legal sources agreed to before the date of entry into force of the WTO Agreement. Signup and view all the answers

What is a functional goal of GATT as mentioned in the text?

Establishment of legal certainty, e.g.by duty of information and transparency or dispute settlement. Signup and view all the answers

What was the role of the GATT system in settling trade disputes?

It provided a mechanism for settling trade disputes between its contracting parties Signup and view all the answers

What was a key shortcoming of the GATT system?

Limited applicability of agreed-upon rules Signup and view all the answers

How did the GATT system address barriers to trade in goods?

By promoting trade liberalization and reducing tariffs Signup and view all the answers

What is the current average tariff rate for major industrialized countries, as mentioned in the text?

Around 5% Signup and view all the answers

How did GATT's negotiating rounds initially focus on reducing barriers to trade?

By focusing on tariff reductions Signup and view all the answers

What were some of the shortcomings of GATT's dispute settlement system?

Considerable delays in the dispute resolution process Signup and view all the answers

How did parties accomplish safeguard goals despite the breakdown in implementing GATT rules?

Through voluntary export restraints Signup and view all the answers

Which areas of trade effectively escaped GATT disciplines over time?

Agriculture and clothing Signup and view all the answers

What was the primary method used by developing country contracting parties to protect industries injured by imports?

Voluntary export restraints Signup and view all the answers

How was the breakdown in the application of the agreed-upon rules viewed in relation to GATT?

As undermining the idea of GATT as a rule-based multilateral-trading system Signup and view all the answers

What is the primary focus of the General Agreement on Tariffs and Trade (GATT) dispute settlement mechanism?

Establishing legal certainty Signup and view all the answers

Which principle of GATT is related to the dispute settlement mechanism?

Non-discrimination Signup and view all the answers

What was given particular attention to in the General Agreement on Tariffs and Trade (GATT) with respect to developing countries?

Establishing legal certainty Signup and view all the answers

Which of the following principles of GATT is NOT related to the dispute settlement mechanism?

Principle of reciprocity Signup and view all the answers

What has been one of the main functional goals with respect to the dispute settlement mechanism in the General Agreement on Tariffs and Trade (GATT)?

Increasing the exchange of goods Signup and view all the answers

What was a significant issue with many contracting parties, particularly developing countries, in relation to their tariff lines?

They had agreed to limits on relatively few of their tariff lines Signup and view all the answers

Which two major areas of trade effectively escaped GATT disciplines over time?

Clothing and textiles Signup and view all the answers

How did parties accomplish safeguard goals, despite the provision for imposing safeguard measures under GATT rules?

Through voluntary export restraints, which were largely tolerated by all parties Signup and view all the answers

What was viewed as undermining the idea of GATT as a rule-based multilateral-trading system?

The breakdown in the application of the agreed-upon rules Signup and view all the answers

In terms of its dispute settlement system, how did GATT compare to other forms of state-to-state dispute settlement?

It operated relatively well, especially when compared to other forms of state-to-state dispute settlement Signup and view all the answers

What was a common alternative to imposing safeguard measures under GATT rules?

Imposing voluntary export restraints Signup and view all the answers

What was the predominant method used by developing countries in relation to their tariff lines?

Bound relatively few of their tariff lines Signup and view all the answers

'Questionable legality' under GATT rules refers to which aspect of safeguard measures?

'Questionable legality' refers to whether certain measures were consistent with GATT rules Signup and view all the answers

'Considerable delays in various parts of the process' refers to which part of GATT's functioning?

'Considerable delays' affected various stages of GATT's dispute settlement process Signup and view all the answers

What impact did the breakdown in the application of agreed-upon rules have on GATT?

Undermined its status as a rule-based multilateral-trading system Signup and view all the answers

International Trade Law: Main Features of GATT - Lecture 6

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