In 1947 the GATT was instituted based on the two basic principles of reciprocity and nondiscrimination, commonly referred to as the most favored nation (MFN) principle.

True

Explanation:

GATT stand for General Agreement of Tariffs and Trade is a multilateral agreement to regulate international trade. It purpose is the reduction of trade barriers, tariffs and preferences in International trade.

GATT was first discussed during the UN conference on Trade and Employment 30 October 1947. It was the result of failure of the negotiating governments to create the international Trade Organisation. It was was signed by 23 nations on Geneva on 30 October 1947 and was effective from 1st January 1948.