Understanding GATT: The Full Form Explained

The question asks for the meaning of the acronym GATT. GATT is a significant term in international economic relations.

What does GATT stand for?

GATT stands for General Agreement on Tariffs and Trade. This agreement was established after World War II to regulate and promote international trade among its member countries.

Analyzing the Options for GATT

Let's look at why the correct option is the best fit:

• Option 1: General Agreement on Tariffs and Trade - This option correctly expands the acronym GATT. It accurately reflects the agreement's focus on reducing trade barriers, specifically tariffs (taxes on imported goods) and other trade-related issues.
• Option 2: General Agreement on Tax and Trade - This option is incorrect because GATT specifically deals with tariffs, which are a type of tax on imports, rather than general taxes. The term used is 'Tariffs', not 'Tax'.
• Option 3: General Agreement on Trade and Terms - This option is incorrect. While trade involves terms, the specific focus of GATT was on tariffs and quantitative restrictions, not just general 'terms'.
• Option 4: General Agreement on Tariffs and Tax - Similar to option 2, this is incorrect because the agreement's name focuses on tariffs and broader trade rules, not general 'tax'. The second 'T' stands for 'Trade', not 'Tax'.

Key Information about GATT

The General Agreement on Tariffs and Trade was a foundational agreement for global commerce. Key points include:

• It aimed to create rules for international trade and reduce trade barriers.
• It was signed in 1947 and came into effect in 1948.
• GATT was eventually superseded by the World Trade Organization (WTO) in 1995, following the Uruguay Round of trade negotiations.

Therefore, the correct expansion of GATT is General Agreement on Tariffs and Trade.