Page 45 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes 2.2.6 GATT “Dillon” 1960–1962

The fifth round occurred once more in Geneva and lasted from 1960 to 1962. The talks were
named after Under Secretary of State General of the US, Douglas Dillon, who first proposed the
talks. Along with reducing over $4.9 billion in tariffs, it also yielded discussion relating to the
creation of the European Economic Community (EEC).

2.2.7 GATT “Kennedy” 1964–1967

The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after
the late US President Kennedy in his memory. Concessions were made on $40 billion worth of
tariffs. Some of the GATT negotiation rules were also more clearly defined.

2.2.8 GATT 1973–1979

The seventh round of GATT took place in Tokyo from 1973 until 1979. The talks managed to
reduce several trade barriers in addition to $300 billion in tariffs. Negotiations covered a range
of topics including government procurement, customs valuation, subsidies, countervailing
measures, antidumping, standards and import licensing.

2.2.9 GATT and the World Trade Organization

The other 52 GATT members rejoined the WTO in the following two years (the last being Congo
in 1997). Since the founding of the WTO, 21 new non-GATT members have joined and 28 are
currently negotiating membership.
Of the original GATT members, only the SFR Yugoslavia has not rejoined the WTO. Since FR
Yugoslavia, (renamed to Serbia and Montenegro and with membership negotiations later split
in two), is not recognised as a direct SFRY successor state; therefore, its application is considered
a new (non-GATT) one. The contracting parties who founded the WTO ended official agreement
of the “GATT 1947” terms on December 31, 1995.

Notes In 1994 the GATT was updated to include new obligations upon its signatories. One
of the most significant changes was the creation of the World Trade Organization (WTO)

Whereas GATT was a set of rules agreed upon by nations, the WTO is an institutional body. The
WTO expanded its scope from traded goods to trade within the service sector and intellectual
property rights. Although it was designed to serve multilateral agreements, during several
rounds of GATT negotiations (particularly the Tokyo Round) plurilateral agreements created
selective trading and caused fragmentation among members. WTO arrangements are generally
a multilateral agreement settlement mechanism of GATT.

Did u know? The 75 existing GATT members and the European Communities became the
founding members of the WTO on January 1, 1995.

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