Question
How has WTO evolved from GATT? What are its functions? Describe salient features of Agreements of Agriculture and Trade in Services.
Answer :
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Skip in 10
The World Trade Organization (WTO) has evolved from its predecessor, the General Agreement on Tariffs and Trade (GATT), and plays a crucial role in regulating and promoting international trade. In this answer, we will explore the evolution of the WTO from GATT, its functions, and delve into the salient features of the Agreements on Agriculture and Trade in Services.
Evolution from GATT to WTO:
The GATT was established in 1947 as an international framework to reduce trade barriers, such as tariffs and quotas, and to promote international trade and economic cooperation in the aftermath of World War II. However, it was primarily an agreement, not a formal organization, and had several limitations. These limitations led to the need for a more robust and comprehensive international trade organization, which eventually led to the establishment of the WTO.
1. Legal Framework: One of the key differences between GATT and the WTO is their legal status. GATT was a set of agreements, while the WTO is an international organization with a formal legal framework. The establishment of the WTO was made official by the Marrakesh Agreement in 1994, which replaced GATT.
2. Expanded Scope: GATT primarily focused on the regulation of trade in goods. In contrast, the WTO expanded its scope to cover trade in goods, trade in services, and intellectual property rights, making it a comprehensive framework for international trade.
3. Dispute Settlement Mechanism: The WTO introduced a more robust and formal dispute settlement mechanism, allowing member countries to bring trade disputes to
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