The motive of WTO/GATT or World bank as we bookishly understand was to mend and reconstruct dying economies or avoid a probable economic crisis. But the backroom reality is quite dry to digest. GATT agreement was an economic conspiracy by the developed nations particularly United States of America to suck developing economies, putting a heavy lid on their economic growth rate. The article is a product of a fine research gone into it. The article ahead unleashes the dark side of the Duncle Draft (GATT Agreement).
1948 saw the birth of GATT with a motive of tackling economic havocs that might follow after the WWII and to a large extent the initial clauses served the principal purpose of the document. But in 1986 when America and other nations of west flourished economically due to globalization, they saw a probable dark cloud over this model of never ending globalization. The dangerous clouds were high trade and tariffs and other quantitative barriers on foreign goods in most of the land in South Asia and Africa which meant half of the globe.
Thus, with this USA used all it’s might to rise and alter and amend the GATT clauses. A committee was setup for the same presided by Mr. Arthur Duncle, the committee came up with an altered version of GATT Agreement or Duncle Draft or WTO Agreement. In 1991 when India faced its worst economic setback, India went to European economies for loans and that’s when India was made to sign the Duncle Draft on 15 December 1994, the interesting fact under the table was that, right after India signed the document 76 nations including Pakistan signed the same document the very next day I.e. 16 December 1994. The sad part is that, the only reason these nations had to sign the document was India’s ratification of the same, afterall India was presiding over G77 at that point and all these nations were members of it. That meant, in two day’s time western superpowers could expand their market in 77 countries without a significant duty. The direct implications of which were to be faced by domestic production houses and enterprises.
The most shocking reality I came across while going through a small research to deliver the article was, USA signed the agreement in 1995, right after India and these 76 nations did. Before signing the agreement, USA played a masterstroke that caught the entire world wrong footed. An amendment to the US constitution was passed in US parliament that said “US constitution will always prevail over all international treaties.” which means that if there is a conflict between GATT clauses and US constitution, the US constitution will prevail.
This marked the beginning of the largest economic conspiracy theory, dark consequences of which are till date faced by every domestic manufacturing unit of most developing countries around the world.
-Sachin Sengar (Editor Backroom Defiance)