From GATT to Havana: A Comparative Journey in International Trade Governance
Keywords:
General Agreement on Tariffs and Trade (GATT), Havana Charter's, economic, weaknesses, contemporary relevanceAbstract
This study presents a comparative analysis of the General Agreement on Tariffs and Trade (GATT) and the proposed Havana Charter, shedding light on their respective strengths, weaknesses, and contemporary relevance in the context of international trade regulation. GATT, established in 1947, primarily focused on reducing tariffs and trade barriers among member countries, while the Havana Charter sought a more comprehensive approach, addressing issues such as employment, economic development, and international economic cooperation. Through a thorough examination of their scope, legal frameworks, negotiation processes, and impacts on international trade, this analysis reveals significant differences in their approaches and outcomes. GATT's legal framework, based on principles of non-discrimination, reciprocity, and transparency, provided a foundation for promoting international
trade and preventing protectionism. Its negotiation process, involving a smaller group of countries, led to successive rounds of tariff reductions and trade liberalization, contributing to decades of unprecedented economic growth and prosperity. However, GATT's narrow focus and limited institutional mechanisms constrained its ability to address broader socio-economic issues and promote equitable development. In contrast, the Havana Charter's ambitious objectives and broader scope aimed to address the multifaceted challenges of post-war reconstruction and development. Despite its comprehensive approach and inclusive negotiation process, the Charter ultimately failed to enter into force due to political, economic, and institutional obstacles.
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