What is a multilateral trade pact? Discuss the first one that was formed and what its impact has been.

What will be an ideal response?

A multilateral trade pact is a group of countries that agree to reduce trade barriers and promote free trade among its members. The first multilateral free-trade pact was the 1947 General Agreement on Tariffs and Trade or GATT. The initial 23 GATT members agreed to reduce trade barriers and give all member nations equal access to their domestic markets. As a result, average tariff rates fell significantly. In 1994, 117 nations signed the GATT pact. Ultimately all member nations benefit from reduced prices and more competition.