General Agreement on Tariffs and Trade (GATT) Expanded Considerably to Become the EU

The General Agreement on Tariffs and Trade (GATT) was established in 1947 as a multilateral agreement among countries to promote international trade through the reduction of trade barriers. Over the years, GATT expanded considerably to become what is now known as the European Union (EU).

GATT was created to regulate trade relations between its member countries, with a focus on reducing tariffs and other trade barriers. The agreement also sought to promote fair trade practices, encourage economic growth, and increase employment opportunities. GATT was instrumental in reducing global tariffs, from an average of around 40% in 1947 to less than 5% by the 1990s.

In 1957, six countries in Europe – Belgium, Germany, France, Italy, Luxembourg, and the Netherlands – formed the European Economic Community (EEC). The EEC aimed to integrate the economies of these countries and promote free trade through the elimination of tariffs and other trade barriers. The EEC was based on a treaty signed in Rome, known as the Treaty of Rome.

Over the years, the EEC evolved into what is now known as the European Union (EU). Today, the EU is a political and economic union of 27 member states located primarily in Europe. The EU has its own legislative, executive, and judicial institutions, and has established policies on a wide range of issues, including trade, agriculture, and the environment.

The EU is built on the principles of free trade and open markets, with a focus on reducing trade barriers and promoting fair trade practices. The EU has established a common trade policy, which allows it to negotiate trade agreements on behalf of all its member states. The EU has also taken steps to promote sustainable development, protect the environment, and provide economic opportunities for its citizens.

In conclusion, the General Agreement on Tariffs and Trade (GATT) laid the foundation for the European Union (EU) by establishing the principles of free trade and fair trade practices. Over the years, the EU has expanded and evolved to become a powerful political and economic union, with a focus on reducing trade barriers, promoting sustainable development, and providing economic opportunities for its citizens. As the EU continues to grow and evolve, it will play an increasingly important role in shaping the global economy and promoting international trade.