Final answer:
The three basic areas covered by GATT are tariffs, nontariff barriers, and services and intellectual property. These were essential in reducing trade restrictions and setting the stage for the WTO.
Step-by-step explanation:
The General Agreement on Tariffs and Trade (GATT) was established in 1947 to offer a framework for international trade by reducing tariffs and other trade barriers. Over time, the agreement covered more areas beyond the initial focus. The three basic areas covered by GATT include:
- Tariffs
- Nontariff barriers
- Services and Intellectual Property
These fundamental areas were designed to promote international trade by making it easier and fairer for countries to do business with each other. GATT has been instrumental in reducing trade disputes through its structured negotiation processes and has paved the way for the creation of the World Trade Organization (WTO).