Question

Which of the following statements is true of the General Agreement on Tariffs and Trade (GATT)? Multiple Choice The GATT panels have enforcement powers apart from advisory powers. The United States, the United Kingdom, and Germany were the only signatories of the original GATT. It created an agency to serve as watchdog over world trade. The original agreement provided a process to increase the tariffs on trade goods. GATT member nations seek to resolve their trade disputes unilaterally.

Answer 1

The correct answer is:

It created an agency to serve as watchdog over world trade.

Explanation:

The General Agreement on Tariffs (which was replaced by the World Trade Organization) was founded on 1947 and was originally signed by 23 nations including the United Kingdom and the United States due to the increase on international trade after World War II. The main objective of the GATT was to reduce trade barriers, it established trade without discrimination and protection through tariffs to provide domestic protection to industries. The GATT member nations seek to resolve their trade disputes bilaterally and it created an agency to serve as watchdog over world trade, when disputes between nations can't be resolved a special panel of the GATT would recommend a solution.