WTO & GATT

WTO & GATT relationship and differences

1. WTO & GATT .

2. GATT General Agreement on Tariffs and Trade  ( GATT ) was a multilateral agreement regulating international trade . GATT was signed by 123 nations in Geneva on October 30, 1947 and took effect on January 1, 1948 . Lasted until the signature by 123 nations in Marrakesh on April 14 , 1994 of the Uruguay Round Agreements, which established the  World Trade Organization (WTO) on January 1, 1995.

3. GATT contained two things; An international agreement, i.e. a document setting out the rules for conducting international trade An international organization created later to support the agreement This continued to exist half a century. GATT no longer exists. It has now been replaced by WTO

4. Relationship between GATT and WTO GATT dealt with trade in goods. It has been incorporated into new WTO agreements. Now there’s GATT General Agreement on Trade in Services (GATTS) Trade Related Aspects of Intellectual Property Rights (TRIPS) WTO brings these three together within a single organisation. So WTO is not a simple extension of GATT, it is much more

5. GATT no longer exists but GATT agreements lives on. Old one was GATT 1947 and the new one is GATT 1994 GATT’s key principles have been adopted by agreements in services and intellectual property and this includes non-discrimination and transparency

6. WTO The   World Trade Organization  ( WTO ) is an  organization  which regulates international trade . Commenced on 1 January 1995 Under the Marrakesh Agreement, Signed by 123 nations on 15 April 1994, Replacing the General Agreement on Tariffs and Trade  (GATT), which commenced in 1948 .   WTO deals with regulation of trade between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process

7. WTO v/s GATT WTO The WTO and its agreements are permanent. The WTO has “members.” The WTO deals with trade in services and intellectual property as well. GATT The GATT was provisional. GATT had “contracting parties” The GATT dealt with trade in goods.

8. . As an international organisation, the WTO has a sound legal basis because all members have ratified the WTO Agreements, and the agreements themselves describe how the WTO is to function. Its contracting parties never ratified the General Agreement, and it contained no provisions for the creation of an organisation.

9. . The WTO dispute settlement system is faster and more automatic than the old GATT system. Its rulings cannot be blocked . It is permanent institution GATT was less powerful; dispute settlement system was slow GATT was a set of rules and multilateral agreement

10. . It’s activities are full and powerful The WTO has introduced a trade policy review mechanism that increases the transparency of members’ trade policies and practices. It was applied on provisional basis No such trade policy review mechanism is available in GATT.