What does GATT primarily focus on?

Master CIPS Commercial Contracting (L4M3) Test. Review with comprehensive multiple choice questions including detailed explanations. Boost your confidence and excel on your exam!

GATT, or the General Agreement on Tariffs and Trade, primarily focuses on reducing tariffs and trade barriers on goods. Its main objective is to promote international trade by facilitating the exchange of physical goods across nations through the reduction of taxes, import fees, and restrictions that might hinder trade. Established in 1947, GATT aimed to create a stable and predictable trading environment by encouraging member countries to adhere to agreed-upon rules and obligations concerning trade in goods.

While "Services across international borders," "Environmental standards in trade," and "Labor laws affecting international trade" are important aspects of international trade discussions, they fall outside the primary scope of GATT's original intentions. Instead, the organization has been more concerned with issues directly related to the exchange of tangible products, which is reflected in its focus on tariffs and trade barriers. Thus, choosing the option related to goods aligns perfectly with GATT's foundational goals and activities.

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