Which organization replaced GATT in 1995?

Which organization replaced GATT in 1995?

• A. International Monetary Fund
• B. World Trade Organisation
• C. European Union
• D. World Bank

Answer: (B)

The World Trade Organization (WTO) replaced the General Agreement on Tariffs and Trade (GATT) in 1995. The establishment of the WTO marked a significant shift in the global trading system by providing a more structured framework for regulating international trade. Unlike GATT, which primarily focused on reducing tariffs and promoting trade liberalization through rounds of negotiations, the WTO includes a more comprehensive set of rules covering trade in goods, services, and intellectual property. The WTO also plays a critical role in resolving trade disputes between member countries, ensuring compliance with trade agreements, and providing a platform for ongoing negotiations to facilitate free trade. This transition to a formal organization came as part of the Uruguay Round negotiations, which sought to address the shortcomings of GATT and create a more robust institution for managing global trade. Understanding the difference between these organizations highlights the evolution of international trade governance and the increasing complexity of global economic interactions after the end of the GATT era.

The World Trade Organization (WTO) replaced the General Agreement on Tariffs and Trade (GATT) in 1995. The establishment of the WTO marked a significant shift in the global trading system by providing a more structured framework for regulating international trade. Unlike GATT, which primarily focused on reducing tariffs and promoting trade liberalization through rounds of negotiations, the WTO includes a more comprehensive set of rules covering trade in goods, services, and intellectual property.

The WTO also plays a critical role in resolving trade disputes between member countries, ensuring compliance with trade agreements, and providing a platform for ongoing negotiations to facilitate free trade. This transition to a formal organization came as part of the Uruguay Round negotiations, which sought to address the shortcomings of GATT and create a more robust institution for managing global trade.

Understanding the difference between these organizations highlights the evolution of international trade governance and the increasing complexity of global economic interactions after the end of the GATT era.