conditions might force countries to face pressure to renege on their tariff commitments. We have already observed the current incarnation of a number of these provisions, such as antidumping and safeguards, as they have been part of the GATT since its origin. In other instances, the exceptions that we introduce below arose on an ad hoc basis and were not anticipated when the GATT was written. In a few others, their use waned and they have largely disappeared from the current policy landscape.

In keeping with our organizational structure, we use the lens of policy instruments to describe the major trade policy developments arising during the GATT era. We begin by examining the procedures by which countries could increase their MFN tariffs through renegotiations, before we push beyond applied tariffs to other border barriers. We also introduce an emergency import restriction necessitated by the fixed exchange rate regime of the post-war era that countries could implement to address a macroeconomic (balance of payments) crisis.

We also highlight other exceptions and carve outs that arose during the GATT period, some of which cannot be tied to any singular policy instrument or exception. In particular, the GATT had to accommodate the contentious integration of major new members such as Japan into the system; it responded to demands from developing countries for special and differential treatment; it sought to retain relevance despite major economies brokering side deals that resulted in entire sectors (textiles and apparel, agriculture) being pulled out of certain elements of the system; it oversaw the rise of less transparent and less market-oriented ‘grey area’ measures such as voluntary export restraints; and it witnessed the increased use of antidumping by high-income economies, a temporary trade barrier policy that has since exploded in use globally.

In a final section we draw a few implications from this era for contemporary research and policy. Some of the policies of importance were only temporary; others have arguably had effects that persist to this day. Along the way, we also highlight both our main themes and important venues for additional research, especially given the troves of historical data, digitization, and electronic archives increasingly being made publicly available to researchers.<sup>66</sup>

# **4.1 Pre-GATT 1947 tariff levels, and tariff trends over the GATT period**

The GATT negotiations began in 1947 with 23 countries - referred to as ‘Contracting Parties’ - ultimately signing the agreement. The initial activity consisted of a round of reciprocal tariff cutting negotiations between those countries, as well as the establishment of a set of principles, rules and exceptions, set out as distinct ‘Articles’ in the agreement, that together launched the new multilateral trading system.<sup>67</sup> The US, Canada, Australia, the countries of Western Europe, and the other Contracting Parties then repeatedly convened under GATT negotiating rounds over the next five decades to bargain for additional tariff reductions and sometimes consider adoption

> 66The Data Appendix includes a detailed introduction and discussion of the GATT archival data utilized in this Section.

> 67For a description of the key GATT Articles - the rules and exceptions - that we have introduced and referenced throughout this chapter, see Table Appendix A.

38