What is GATT?

GATT is like a big agreement that helps countries trade more easily with each other.

Imagine you and your friend are trading toys at recess. Sometimes, your friend says, "I’ll only take one of your cars if you give me three of my blocks." That’s not fair, it makes trading harder. GATT is like a rulebook that helps everyone in the class trade fairly so no one feels tricked.

GATT stands for General Agreement on Tariffs and Trade. Think of it as a group of countries working together to make sure tariffs, which are like extra fees you pay when buying something from another country, aren’t too high. Lower tariffs mean people can buy more stuff from other countries without paying too much.

Before GATT, countries would sometimes put up high tariffs just to protect their own businesses. That made trading slower and less fun, kind of like if your friend suddenly said they wouldn’t trade toys at all unless you gave them all your blocks! But with GATT, countries agreed to lower those extra fees so everyone could trade more freely and happily.