GATT is one of the key to promote international trade of goods and service through the reduction of tariff and non-tariff barriers to trade. The main objective of GATT is to expand international trade by liberalizing so as to bring about all round economic prosperity. Apart from that, there also other GATT objective which are raise standard of living, ensuring full employment and large and steady growing volume of real income and effective demand, developing full use of resources of the world, and lastly expand of production and international trade. There are several things that had been include in GATT agreement, among that are the principles that GATT members need to follow. The first principle of GATT that GATT members need to follow is
All of the GATT members need to accord non-discrimination. Its means that, if that country give special tariff treatment to one of the GATT country, that country need to give special tariff treatment to all GATT countries fairly. There is no other countries with some exceptions receive better treatment or lower treatment. But there are exceptions towards this provision. The first exception is if the existing tariff preferences such as those between British Commonwealth. The second one is GATT / WTO allows the formation of custom union which causes significant erosion to the principle. The third one is if there is an escape clause allows any members to withdraw or modify the tariff concessions if it threatens a serious injury to domestic
In case of developing countries, there is special provision to promote the Trade of Developing Countries that had been added in 1965 into the GATT in Part IV. The first special provision stated that developed economies will give high priority to reduction or elimination of tariff on products. The second special provision stated that the contracting parties refrain from introducing tariffs and NTBs to such imports. The third special provision stated that the contracting parties refrain from imposing internal taxes to discourage consumption of primary products from LDCs. The last special provision stated that the contracting parties are not expect reciprocal commitments from