Bretton Woods Revisted: GATT (part 1 0f 4)

5) The Dillon Round (1960). This round, named after U.S. Secretary of Treaury Douglas C. Dillon, resulted in a 10 percent reduction in tariffs that had been imposed on U.S. exports and other total world tariff reductions, equaling some $40 billion.

6) The Kennedy Round (1963). Once cited as one of the most successful GATT rounds, the Kennedy Round cut tariffs on non-agricultural products by about 35 percent, affecting some 80 percent of the dutiable products of the industrialized world. In addition, the round made significant progress in addressing a previously unaffected industry, agriculture. In fact, agricultural goods received a 20 percent reduction in tariffs (see Gilbert R. Winham, "International Trade and the Tokyo Round," Princeton University Press, New Jersey, 1986, p.61).

7) The Tokyo Round (1973). This round achieved minimal reductions in tariffs. The main result, however, was to establish a new framework for future rounds.

8) The Uruguay Round (1986). Initiated by the Reagan Administration, the Uruguay Round achieved reforms in continue reduction of tariffs and the addressing of "non-tariff" barriers for the first time. Individual agreements were reached on free trade area, agriculture, textiles and apparel quotas, etc. The agreement also created the World Trade Organization, which replaced the GATT in dispute settlement and as the forum for future negotiations.

The World Trade Organization

The WTO was established Jan. 1, 1995, and is located in Geneva, Switzerland. There are 132 members, it has a budget of over $90 million and has about 500 full-time employees. The main functions of the WTO are:

1) To administer World Trade Organization agreement;

2) Provide a forum for current, ongoing, and future trade negotiations;

3) Provide a forum to settle trade disputes between members;

4) Monitor and collect data on member nations' trade practices;

5) Provide technical assistance to developing countries;

6) Work in cooperation with other international organizations.

It is important to realize that while GATT (the agreement) created the World Trade Organization in the Uruguay Round, they are not the same. The GATT (the organization) was not a recognized international organization by international law. Moreover, GATT (the agreement) dealt almost specifically with trade in goods. The original GATT agreement has been amended and incorporated into the World Trade Organization agreements. This new organization now covers trade in goods, as well as trade in services and intellectual property rights.

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