1. Protectionism, GATT, and world trade In 1932, U. S. manufacturers, which used to enjoy steady relationships with their foreign distributors and export nearly 30% of their output, realized that their exports had fallen to only 10% of total output. Which of the following is the most likely reason for this decrease in exports? The low quality of U. S. products Retaliatory tariffs by trading partners War between the United States and Switzerland The signing of the General Agreement on Tariffs and Trade (GATT) in 1947 resulted in the adoption of several new trade policies.