The General Agreement on Tariffs and Trade (GATT) was first signed in 1947 and aimed to reduce tariffs and trade barriers between participating countries. The World Trade Organization (WTO) superseded the GATT in 1995 and continues to promote free trade through the establishment of global trade rules. While both organizations are concerned with international trade, there are important distinctions between them. This article will explore the key differences between GATT and WTO.
What is GATT?
GATT is the General Agreement on Tariffs and Trade, a set of rules governing international trade. GATT was created in 1948 to help promote global economic growth and reduce barriers to trade. The agreement covers a wide range of topics, including tariffs, subsidies, and other trade restrictions. GATT’s goal is to create a level playing field for all countries by reducing barriers to trade and promoting fair competition. GATT has been successful in achieving its goals, and today it is the cornerstone of the global trading system.
What is WTO?
- The World Trade Organization (WTO) is an international organization that deals with the rules of trade between nations. Its main function is to ensure that trade flows smoothly, predictably, and freely as possible. The WTO was founded in 1995, and it currently has 164 member states. The WTO’s headquarters are in Geneva, Switzerland.
- The WTO deals with a wide range of issues related to international trade, such as tariffs, import quotas, subsidies, and product safety standards. The organization also provides a forum for discussion and negotiation between member countries. In addition, the WTO helps to resolve trade disputes between countries.
- The WTO’s ultimate goal is to help promote global economic growth and development. To achieve this, the organization works to liberalize international trade and reduce barriers to trade. In doing so, the WTO hopes to boost economic growth, create jobs, and improve living standards around the world.
Difference between GATT and WTO
GATT and WTO are two international organizations that have a significant impact on global trade. GATT, or the General Agreement on Tariffs and Trade, is a multilateral agreement that was created in 1947 with the goal of reducing tariffs and other barriers to trade. WTO, or the World Trade Organization, is a newer organization that was established in 1995.
It builds upon the GATT framework and provides a forum for negotiating trade agreements and resolving disputes. Both GATT and WTO work to promote free trade by reducing barriers and promoting fair competition. However, there are some key differences between these two organizations. GATT only applies to goods, while WTO also covers services and intellectual property. Additionally, WTO has more powerful enforcement mechanisms than GATT, making it more effective at promoting compliance with trade agreements.
The General Agreement on Tariffs and Trade (GATT) was created in 1947 as a way to reduce tariffs and trade barriers between countries. The World Trade Organization (WTO) superseded GATT in 1995, with the goal of furthering global trade by providing a forum for member nations to negotiate and resolve disputes.