WTO & Differences between GATT and WTO

1. WTO &
DIFFERENCES BETWEEN GATT AND WTO
By
A.Raja

2. WORLD TRADE ORGANISATION
•It was established on January 1, 1995.
•It is the embodiment of the Uruguay Round results and the
successor to GATT.
•76 Governments became members of WTO on its first day.
•It has a legal status and enjoys privileges and immunities on the
same footing as the IMF and the World Bank. It is composed of the
Ministerial Conference and the General Council.
•Director-General heads the secretariat of WTO. He is responsible
for preparing budgets and financial statements of the WTO.

3. •WTO has now become the third pillar of United Nations
Organization (UNO) after World Bank and International Monetary
Fund.
Basic Principles:
•Non-discrimination
•Transparency
•Binding & enforceable commitments
•Mutual exchanges and agreements
•Safety values

4. Objectives
•To raising standard of living and income, promoting full
employment and optimum utilization of world resources.
•Introduce sustainable development
•Taking positive steps towards developing countries
•Promote trade flows by encouraging nations to adopt non-
discrimination and predictable trade policies.
Establish procedures for solving trade disputes among
members.

5. Functions
•Acting as a forum for multilateral trade negotiations
•Seeking to resolve trade disputes
•Overseeing national trade policies
•Cooperating with other international institutions involved in
global economic policy making.

6. Benefits of WTO
•Promote peace
•Disputes are handled constructively
•Rules make life easier for all
•Free trade cuts the cost of living
•Provides more choices of products & qualities
•Trade raises incomes
•Trade stimulates economic growth
•It encourages good government

7. Drawbacks/criticism
•Decisions are dominated by developed countries
•Many countries are not have the financial and knowledge
resources to participate in decision making
•Under developed countries are powerless in WTO
•It is a tool of powerful lobbies

8. GATT WTO
 Its agreements are adhoc &
provisional
 It is a permanent institution
 It had contracting parties  It has members
 It was less powerful  It is more powerful
 Its dispute settlement system
was not faster and automatic
 Its dispute settlement system was
fast and automatic
 Its rules are applicable to
trade in merchandise goods
 Its rules are applicable to trade in
merchandise and trade in
services and trade related aspects
of intellectual property.
Differences between GAAT & WTO

9. THANK YOU