The purpose of GATT was to
A) improve trade balances in developing countries.
B) reduce or eliminate trade barriers such as quotas and tariffs.
C) stop the practice of "dumping."
D) encourage governments to increase the protection for their domestic industries.
E) do all of these.

Question

Quizplus · Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was created in order to reduce or eliminate trade barriers such as quotas and tariffs, with the overall goal of promoting international trade. While it may indirectly lead to improved trade balances in developing countries, it is not its main purpose. It also does not aim to encourage governments to increase protection for their domestic industries, but rather to promote free trade. The issue of dumping is addressed in GATT, but it is not the main purpose of the agreement. Therefore, B is the best choice.

The Purpose of GATT Was to