When was GATT established ?

Question

Accepted Answer

The correct option is 1:
The General Agreement on Tariffs and Trade (GATT) was concluded and signed by 23 founding nations in Geneva, Switzerland, on October 30, 1947. This date marks the official establishment of GATT as an international legal agreement, intended as a provisional measure to govern global trade relations. It was one of the major economic frameworks developed after World War II, alongside the IMF and World Bank, to ensure post-war stability and prevent the kind of destructive trade wars that occurred in the 1930s. Although it was meant to be temporary, awaiting the ratification of the Havana Charter for the International Trade Organization (ITO), GATT served as the primary rulebook for the multilateral trading system for nearly five decades.

The incorrect option is 2:
The year 1948 is historically related to GATT, but it is not the year of its establishment. The General Agreement on Tariffs and Trade formally entered into force on January 1, 1948, following its conclusion in the previous year. While 1948 marks the commencement of its operational phase, the legal instrument itself was created and signed in 1947, which is the generally accepted establishment year. Therefore, while it began operating in 1948, its founding date is accurately placed in 1947.

The incorrect option is 3:
The year 1995 is significant because it marks the *end* of GATT and the *beginning* of its successor institution. The World Trade Organization (WTO) was officially created on January 1, 1995, as a result of the final Uruguay Round of GATT negotiations. The WTO absorbed the GATT, transforming the provisional agreement into a permanent, full-fledged international organization. Thus, 1995 is the date of the transition to the WTO, not the establishment of the original GATT.

The incorrect option is 4:
The year 1903 is entirely incorrect as the establishment date for the General Agreement on Tariffs and Trade. GATT was a product of the post-World War II global economic restructuring, which began in the mid-1940s. The entire concept and framework for a multilateral trade agreement like GATT did not exist at the turn of the 20th century. This option is historically implausible and significantly predates the actual discussions and negotiations that led to the creation of GATT.