Which of the following was one effect of the General Agreement on Tariffs and Trade (GATT) on the United States?

• A. It caused the United States to adopt strict import quotas on all foreign goods.
• B. It required the United States to eliminate all tariffs on agricultural products.
• C. It resulted in the United States withdrawing from global trade organizations.
• D. It led to a reduction in trade barriers and promoted increased international trade.

Answer: (D)

Verified step by step guidance

1. Understand the purpose of the General Agreement on Tariffs and Trade (GATT), which was established to promote international trade by reducing trade barriers such as tariffs and quotas.
2. Recognize that GATT aimed to encourage countries, including the United States, to lower tariffs and other restrictions on imports and exports to facilitate freer trade.
3. Analyze the options given: strict import quotas contradict GATT's goal of reducing trade barriers, so this option is unlikely to be correct.
4. Note that GATT did not require the United States to eliminate all tariffs on agricultural products immediately, but rather encouraged gradual tariff reductions across many sectors.
5. Conclude that the most accurate effect of GATT on the United States was that it led to a reduction in trade barriers and promoted increased international trade, aligning with GATT's fundamental objectives.