Following World War II, the major economic powers of the world, recognizing that obstacles to trade hindered economic development and growth, negotiated a set of rules for reducing and limiting barriers to trade and for settling trade disputes. These rules were called the General Agreement on Tariffs and Trade (GATT).

While the world has benefitted enormously from the reduction of trade barriers and expansion of trade made possible by the GATT, the GATT rules were increasingly out of step with the rapidly changing world of global commerce.

They did not cover many areas of trade such as intellectual property and services; they did not provide meaningful rules for important aspects of trade such as agriculture; and they did not bring about the prompt settlement of disputes.

The old GATT rules also created unequal obligations among different Countries, despite the fact that many of the countries that were allowed to keep their markets relatively closed were among the greatest beneficiaries of the system.

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The successful conclusion of the Uruguay Round negotiations was an important part of President Clinton’s strategy for strengthening the domestic economy. The President led the effort to reinvigorate the Uruguay Round and to break the gridlock that had stalled the negotiations despite several years of preparation and another seven years of negotiations.

The final result is a good deal for U.S. workers and companies. It helps us to bolster the competitiveness of key U.S. industries, to create jobs, to foster economic growth, to raise our standard of living, and to combat unfair foreign trade practices.

The agreement will give the global economy a major boost, as the reductions in trade barriers create new export opportunities, and as the new rules give businesses greater confidence that export markets will remain open and that competition in foreign markets will be fair.