General Agreement on Tariffs and Trade GATT focused on reducing prevailing high tariffs Was a able to reduce tariff from 26 to 5%US) Flow trade via bilateral trade agreement voluntary trade restraints undermined GAT GaTT didn't cover services The Uruguay round N , each member country of the Gatt must grant Most-Favored Nation(MFN) clause every member country the most favorable treatment it accords to any other country with respect to imports and exports Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 2-7 General Agreement on Tariffs and Trade GATT focused on reducing prevailing high tariffs. -Was a able to reduce tariff from 26 to 5% (US) -Flow trade via bilateral trade agreement, voluntary trade restraints undermined GATT -GATT didn’t cover services -The Uruguay Round Most-Favored Nation (MFN) clause • “… each member country of the GATT must grant every member country the most favorable treatment it accords to any other country with respect to imports and exports