Why Did the United States Lead Negotiations to Establish the General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement created in 1947 with the goal of reducing barriers to international trade. The United States played a leading role in the negotiations that established the agreement, and for good reason.
One key factor was the United States` position as a major global economic power at the time. After World War II, the US emerged as the dominant economy in the world, with a highly developed industrial sector and a large consumer market. By championing free trade and reducing tariffs on goods, the US hoped to expand its exports and boost its economic growth.
Another factor was the Cold War. The US saw GATT as a tool to promote economic cooperation and development, as well as a way to counter the influence of the Soviet Union and the communist bloc. By supporting the growth of free trade and economic interdependence, the US hoped to create a more stable and prosperous global order.
In addition, US leaders recognized the benefits of international trade for developing nations. By promoting the liberalization of trade, the US hoped to increase access to markets for developing countries, as well as help them gain the resources they needed for economic growth and development.
Overall, the United States played a leading role in the establishment of the General Agreement on Tariffs and Trade due to its economic and geopolitical interests. By promoting free trade and reducing barriers to international commerce, the US hoped to expand its own economy, promote international cooperation, and counter the influence of its geopolitical rivals. Today, the principles and framework established by GATT continue to guide global trade policies and negotiations.