The IMF works to promote international economic cooperation, international trade, employment, and exchange rate stability. 4. Article XXIV(6) lays down the procedure to be followed where a member constituting a customs union proposes an increase in a bound duty. In this context, Members reaffirm the need to initiate the article XXVIII procedure, as set out in the guidelines adopted on 10 November 1980 (BISD 27S/26-28) and in the interpretative agreement to Article XXVIII of the GATT in 1994, before making tariff concessions for the formation of a customs union or an interim agreement leading to the formation of a customs union; are modified or withdrawn. For example, in free trade agreements concluded by the EU, goods are generally considered to be products originating in a given country where a common market is the first step towards an internal market and may initially be limited to a free trade area. The objective of GATT was to eliminate harmful trade trectionism. Trade protectorism probably helped reduce world trade by 66% during the Great Depression. GATT helped restore global economic health after the ravages of the Depression and World War II. Reaffirming that the objective of such agreements should be to facilitate trade between the constituent territories and not to impede the trade of other Members with those territories, and that, to the extent possible, when established or enlarged, the Parties should not have negative effects on the trade of other Members, The GATT was created to put in place rules to end or limit the most costly and undesirable features of the protectionist pre-war period, namely quantitative barriers to trade, such as trade controls and quotas. The agreement also provided for a system for settling trade disputes between nations and the framework allowed for a series of multilateral negotiations aimed at removing tariff barriers. Gatt was considered an important success in the post-war years. 6.
GATT 1994 does not oblige Members benefiting from a reduction in customs duties following the formation of a customs union or an interim agreement leading to the formation of a customs union to grant a compensatory adjustment to their constituent elements. .