The General Agreement on Tariffs and Trade (GATT) was established in 1947 as a multilateral agreement aimed at reducing trade barriers and promoting free trade. In 1994, a new version of GATT was adopted, known as the World Trade Organization (WTO) agreement, which has since been the guiding principle for international trade.
China was admitted to the WTO in 2001, after a long and tough negotiation process. As part of its admission, China agreed to make significant economic reforms and to comply with the WTO rules, including the GATT agreement.
One of the most significant changes China had to make was to lower its tariff rates and open up its domestic market to foreign competition. This was a critical move for China`s export-oriented economy, as it allowed them to have access to foreign markets and expand their industries.
However, China`s compliance with the GATT agreement has been a contentious issue. Many countries, particularly the United States, have accused China of violating the agreement by not adequately protecting intellectual property rights, subsidizing state-owned enterprises, and dumping products at below-cost prices. China denies these charges and insists that it is fulfilling its obligations under the GATT agreement.
Despite the disagreements, the GATT agreement has brought significant benefits to China and the global economy. China`s admission to the WTO has helped it to become the world`s largest exporter and has greatly contributed to the growth of the global economy. The agreement has also helped to reduce trade barriers and promote economic integration, leading to increased competition, efficiency, and innovation.
In conclusion, China`s compliance with the GATT agreement has been a critical factor in its economic growth and integration into the global economy. While there are disagreements about China`s compliance with the agreement, the benefits of the agreement cannot be ignored. As the world becomes increasingly interconnected, adherence to the GATT agreement becomes more critical than ever in promoting free trade and economic growth.