What does GATT stand for?

What does GATT stand for?

• A. Global Agreement on Tariffs and Taxes
• B. General Agreement on Transport and Trade
• C. General Agreement on Tariffs and Trade
• D. General Agreement on Tariffs and Trade Organization

Answer: (C)

The question tests recognizing the exact wording behind a well-known international trade acronym. GATT stands for General Agreement on Tariffs and Trade. This is the official name of the postwar treaty that aimed to reduce tariffs and other barriers to trade and to set basic rules for how countries treated each other in trade. The other phrasing—Global Agreement on Tariffs and Taxes, General Agreement on Transport and Trade, or General Agreement on Tariffs and Trade Organization—adds words that aren’t part of the actual name, or changes the meaning (for example, Taxes instead of Tariffs, or Transport instead of Tariffs). Knowing the precise name also helps you connect it to its historical role as the precursor to the World Trade Organization, which built on its principles.

The question tests recognizing the exact wording behind a well-known international trade acronym. GATT stands for General Agreement on Tariffs and Trade. This is the official name of the postwar treaty that aimed to reduce tariffs and other barriers to trade and to set basic rules for how countries treated each other in trade. The other phrasing—Global Agreement on Tariffs and Taxes, General Agreement on Transport and Trade, or General Agreement on Tariffs and Trade Organization—adds words that aren’t part of the actual name, or changes the meaning (for example, Taxes instead of Tariffs, or Transport instead of Tariffs). Knowing the precise name also helps you connect it to its historical role as the precursor to the World Trade Organization, which built on its principles.