General Agreement on Tariffs and Trade (GATT) is a multilateral agreement that governs international trade. It was created by the United Nations Conference on Trade and Employment in 1947 with the goal of promoting free trade and reducing trade barriers.

The GATT serves as a framework for negotiating and implementing trade agreements between member countries. The agreement covers a wide range of issues related to trade, including tariffs, subsidies, and non-tariff barriers.

Tariffs are essentially taxes that countries impose on imported goods. They are designed to protect domestic industries from foreign competition and generate revenue for the government. However, tariffs can also increase the cost of imported goods for consumers, reducing their access to a wider variety of products.

The GATT seeks to reduce tariffs by promoting free trade. Countries are encouraged to lower their tariffs, which allows goods to flow more freely across borders. This, in turn, stimulates economic growth and reduces poverty.

GATT also aims to regulate subsidies that governments provide to their domestic industries. Subsidies can have a negative impact on international trade by giving certain industries an unfair advantage. The GATT seeks to ensure that subsidies are not used to distort international trade.

Non-tariff barriers include regulations, standards, and other obstacles that limit trade. These barriers can be used to protect domestic industries from foreign competition, but they can also be used to unfairly restrict trade. The GATT aims to reduce non-tariff barriers by promoting transparency and ensuring that trade regulations are fair and equitable.

In summary, the General Agreement on Tariffs and Trade (GATT) plays a crucial role in regulating international trade. It seeks to promote free trade, reduce barriers to trade, and create a level playing field for all countries. By promoting fair trade practices, the GATT helps to stimulate economic growth and reduce poverty around the world.