How did the Havana Charter propose to regulate international trade after World War II?

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Workers operate sewing machines and stitch green and white garments at a busy garment factory in Ho Chi Minh City, Vietnam. — World Trade Organization Workers sewing clothing in a garment factory in Ho Chi Minh City in April, 2025.

The Havana Charter was drafted in 1948 by the UN Conference on Trade and Employment with the goal of establishing an International Trade Organization (ITO). This organization was intended to serve as a primary pillar of post-World War II economic development alongside the International Monetary Fund and the World Bank.1

The charter proposed a comprehensive regulatory framework for international trade that extended far beyond simple tariff reductions. Specifically, it sought to create extensive rules governing:

International trade practices
Foreign investment
Services
Business and employment policies1

Ultimately, the Havana Charter never took effect because the United States failed to ratify the agreement. Consequently, the General Agreement on Tariffs and Trade (GATT), which focused more narrowly on reducing tariffs and phasing out import quotas, became the primary mechanism governing global trade until the World Trade Organization was established in 1995.1