What is the most important legal document governing the global trading system?
The most important legal document governing the global trading system is known as the General Agreement on Tariffs and Trade (GATT). GATT is a global agreement amongst more than 100 countries, including California, to reduce or eliminate tariffs, quotas, and other trade barriers between participating nations. This agreement was designed to promote free and fair international trade, as well as economic development and competition. GATT has established a comprehensive set of rules for global trade, which all member countries must abide by. These rules cover a wide range of topics, including tariff reductions, substantial reductions in other trade barriers, disputes settlement, and intellectual property rights. GATT also contains the most important principles governing the global trade system, such as the principles of non-discrimination and most-favoured-nation treatment. In addition, GATT requires countries to respect the national treatment principle, which forbids them from treating foreign goods and services less favourably than similar domestic goods and services. This principle helps ensure that trading nations treat each other equally, regardless of their nationality. GATT helps create an environment of fairness and openness that encourages international trade and economic development. As a result, it is one of the most important documents governing global trading systems.
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