This document provides an overview and comparison of GATT and the WTO. It discusses that GATT was formed in 1949 to reduce tariffs and encourage global trade but was replaced by the WTO in 1995. The objectives of both organizations were to increase global production and standards of living through international cooperation and trade. The WTO now has 146 member countries and aims to make trade rules transparent and beneficial to developing countries while promoting sustainable development and a rules-based global trading system. India has been a founding member of both GATT and the WTO.

1. GATT( General Agreement On
Tariffs and Trade)
And
WTO (World Trade
Organization )
By Subhasini Rana
BBA 1st year

2. GATT
( General Agreement On
Tariffs and Trade)

3. Introduction to GATT
• The general Agreement On Tariffs and Trade was
negotiated during the UN conference on Trade and
Employment and was the outcome of the failure of
negotiating government to create the International
Trade Organization (ITO). GATT was formed in 1949
and lasted until 1993, when it was replaced by
World Trade Organization in 1995.The original GATT
text is still in effect under the WTO framework,
subject to the modifications of GATT 1994

4. Objectives of GATT
• To do full arrangement in member countries and
thus make increasing in world production.
• To develop the world resources and their full
utilization.
• To lifting the life standard of whole society in the
world on the basis of absolute attitude.
• To solve the problems related with international
trade on the base of mutual cooperation

5. WTO
(World Trade
Organization )

6. Introduction of WTO
• World trade organization (WTO) was established on 1st
January 1995. The predecessor to the WTO began in
1947 with only 23 members today it has 146 members,
comprising approximately 97 percent of world trade. It is
the only global international organization dealing with
the rules of trade between nations. The WTO is an
association of 146 member countries, of the 190
countries in the world today. There are another 30
countries that have observer status, a step that
precedes becoming a full-fledged member so almost all
the countries in the world are members. There are all
type of countries in the WTO, capitalist, socialist, rich and
poor countries, very industrialized and also developing
countries.

7. Objectives of WTO
• To make acceptable efforts to ensure that developing countries,
specially least developed countries of the world, could a share in
the growth of international trade commensurate with the
necessities of their economic development trade.
• To expand and utilize world resources to the best
• TO increase the transparency of decision making processes
• To provide equal opportunities to all countries in terms of trade in
international market .

8. Cont.…
• To permit the optimal use of world’s resources in
accordance with sustainable development
objectives
• To promote World Trade in a manner that benefits
every country

9. Scope & Mission of WTO
• The WTO agreements are lengthy and complex
because they are legal texts covering a wide range
of activities. But a number of simple, fundamental
principles run throughout all of these documents.
These principles are the foundation of the
multilateral trading system.
• Predictable and transparent
• More beneficial for less developed countries
• Protect the environment
• More open

10. Indian's role in WTO
• Founder member- India is a founder member of the
General Agreement on Tariffs and Trade (GATT)
1947 and it successor, the WTO, which came into
effect on 1.1.95 after the conclusion of the Uruguay
Round of Multilateral Trade Negotiations.
• Stability and predictability - India's participation in
an increasingly rule based system in the
governance of international trade is to ensure more
stability and predictability, which ultimately would
lead to more trade and prosperity for itself and the
149 other nations which now comprise the WTO.

11. Thank you