This series of meetings and tariff reductions would continue and new GATT provisions would be added. The average tariff rate rose from about 22% when GATT was first signed in Geneva in 1947 to about 5% at the end of the Uruguay Round in 1993, which also negotiated the creation of the WTO. The PARTIES recognize the importance of trade in tropical products for a large number of less developed Parties and agree that particular attention should be paid to negotiations in this area, including the timing of negotiations and the implementation of the outcomes set out in Section B Ii. The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico and the United States that creates a trilateral trading bloc in North America. The Agreement entered into force on 1 January 1994. It replaced the Canada-U.S. Free Trade Agreement between the U.S. and Canada. Second, although Parties should investigate complaints, make recommendations to a Party and take decisions, there is no procedure on how to do so. The CONTRACTING PARTIES were composed of all gatt Contracting Parties, so studies, recommendations and decisions had to be taken jointly. One of the issues addressed by gatt was how to deal with differences of opinion between the parties on the functioning of the agreement. Article XXII provides for the hearing of the parties. A Party shall „give favourable consideration” to the declarations of another Party „with respect to all matters relating to the implementation of the Agreement”.

If consultations do not provide a satisfactory solution, a Party may consult all members of the CONTRACTING PARTIES on this matter. In May 1963, ministers agreed on three negotiating objectives for the round: the fifth round took place again in Geneva and lasted from 1960 to 1962. The talks were named after U.S. Treasury Secretary and former Under Secretary of State Douglas Dillon, who was the first to propose the talks. Twenty-six countries participated in the round. In addition to reducing tariffs to more than $4.9 billion, discussions also took place on the creation of the European Economic Community (EEC). The third provision was added in 1965 for developing countries acceding to GATT. Lower tariffs have also had benefits for developed countries.

As GATT increased middle-class consumers around the world, the demand for trade with developed countries increased. The Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formerly member economies) that aims to promote free trade and economic cooperation throughout the Asia-Pacific region. Founded in 1989 in response to the growing interdependence of Asia-Pacific economies and the emergence of regional economic blocs (such as the European Union) in other parts of the world, APEC strives to raise living standards and education levels through sustainable economic growth and to promote a sense of community and appreciation of common interests among Asia-Pacific countries. GATT grew out of the Bretton Woods Agreement. The Bretton Woods summit also created the World Bank and the International Monetary Fund to coordinate global growth. Decides to open multilateral trade negotiations on trade in goods within the framework and under the auspices of the General Agreement on Tariffs and Trade. The objective of GATT was to eliminate harmful trade protectionism. Trade protectionism likely contributed to a 66% decline in world trade during the Great Depression.

Gatt helped restore the world`s economic health after the devastation of the Depression and World War II. The text of the Treaty is also very unusual in that it is accompanied in Annex I by `Notes and Additional Provisions` containing explanations and clarifications on the articles of the Agreement and forming an `integral part` of the Agreement. These additional comments and provisions are essentially statements by the negotiators on how the text should be understood and have become important for the interpretation of the GATT. Thus, GATT articles must be read in the light of – and often alongside – the additional notes referred to as „advertising articles”. To some extent, this view was shared in Europe, but the process of European unification created its own emphasis, among which the Kennedy Round sometimes became a secondary focus of the EEC. An example of this is the French veto in January 1963, even before the start of the round, against the accession of the United Kingdom. The EU operates through a system of independent supranational institutions and intergovernmental decisions negotiated by the Member States. The important institutions of the EU are the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union and the European Central Bank. The European Parliament is elected every five years by EU citizens. The EU has developed a single market through a standardised system of laws that apply in all Member States. Within the Schengen area (which includes EU and third countries), passport controls have been abolished.

EU policy aims to ensure the free movement of persons, goods, services and capital, to legislate in the areas of justice and home affairs and to maintain the common policy in the areas of trade, agriculture, fisheries and regional development. A monetary union, the euro area, was created in 1999 and has consisted of 17 Member States since January 2012. Thanks to the Common Foreign and Security Policy, the EU has developed a limited role in external relations and defence. Permanent diplomatic missions have been established throughout the world. The EU is represented at the United Nations, the WTO, the G8 and the G20. The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement governing international trade. Technical assistance and training: The IMF, WTO, and other international organizations and donors often work together to help countries improve their trade capacity. The Enhanced Integrated Framework (EIF) for Trade-Related Technical Assistance to Least Developed Countries helps least developed countries to be more active players in the global trading system by helping them overcome supply-side trade barriers. Having examined the functioning of the GATT Articles with regard to the restrictive and distortive effects of investment measures on trade, it is appropriate to develop other provisions during the negotiations, where appropriate, which may be necessary to avoid such negative effects on trade.

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