Australia is a signatory to the General Agreement on Tariffs and Trade (GATT). This is a multilateral trade agreement administered by the World Trade Organisation (WTO), that seeks to govern and regulate trade between member nations by their adoption of certain international principles and rules. This global philosophy arose out of the economic impacts of the Second World War, whereby renewed efforts were made to bring about a more equitable and conciliatory approach to how nations trade with one another.

Since it's formation in 1946, the fundamental principle of GATT is for open markets. This had a "flow-on" effect in seeking to encourage signatory nations towards "free trade" - that is, limited or no barriers to international trading. In theory, this appears rather simplistic. In reality, the situation is far more complex, given the number of member nations (now exceeding 130) and their position in a world of constant economic and political change.

A vital part of the WTO/GATT process is that major conferences are convened every few years where member nations, through representatives, negotiate on these issues, seeking to reduce barriers to open markets. These conferences are called "Rounds". The eighth conference (Uruguay Round) was completed in December 1993. The ninth conference (Doha Round) is currently in process and is focusing on "technology and financial issues".

Paradoxically, against this background of the ideal free trade objectives of WTO/GATT, member nations (not the least Australia) are under extreme political, industrial and societal pressures to "protect" their own country's producing (agriculture, mining, processing and/or manufacturing) sectors from global competition. It is always a question of balance, implementing Government policy initiatives so that the international rules and principles, that favour the dominant and powerful countries, do not compromise domestic industries.

In reconciling these apparent contradictory demands, the primary obligations to which a signatory country to GATT accede include: -
· To support open market forces;
· If necessary, to use limited instruments of "protection" - primarily "tariff duties" levied on imports;
· To use these instruments in a non-discriminatory way with other member countries;
· To factor into Government programs a long-term process for non-reversible reductions in "protection".

Australia has over the last decades of the 20th Century, achieved to a major extent, all of these objectives. The complexities of global trading has meant that the GATT ideals however, have not always had unfettered and wholesome support - in this country and/or between other member's nations.