The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement regulating international trade from 1948 to 1995. In 1994, 123 nations signed the Uruguay Round Agreements establishing the World Trade Organization (WTO) to replace GATT and incorporate GATT, as well as new agreements on trade in services and intellectual property, into a single organization governing international trade. The WTO commenced January 1, 1995, providing a permanent framework for negotiating trade agreements and resolving disputes.

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 It has now been replaced by WTO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.