Question

The trade agreement that began as advocating for free trade among nations and ended up as a confusing repository for a multitude of bilateral agreements that established quotas on textiles and apparel is known as_______.

Answer 1

Answer:General Agreement on Tariffs and Trade(GATT)

Explanation:

The General Agreement on Tariffs and Trade (GATT) can be referred to as legal agreement between two or more nations, whose overall purpose is to promote international trade by reducing or eliminating trade barriers such as tariffs etc

Answer 2

Answer:

The correct answer is: General Agreement on Tariffs and Trade (GATT).

Explanation:

The General Agreement on Tariffs and Trade (GATT) born as a need to have a set of rules regulating international trade after World War II (1939-1945). In 1995 the GATT was replaced by the World Trade Organization (WTO) which is an organization with wider member contribution. The GATT was seen as confusing for some countries.

As a result, countries with a better understanding of GATT would impose levies on others but those others would not know why exactly because of their poor knowledge of the guidelines. They were simply prone to retaliate under such a scenario with more taxes.