GATT and WTO

The General Agreement on Tariffs and Trade (GATT) was formed in the 1940s to reduce trade barriers that contributed to the Great Depression and World War II.

GATT was later replaced by the World Trade Organization (WTO), a global organization that establishes rules for trade among its member nations. The transition occurred during the Uruguay Round in the 1980s and 1990s, as GATT struggled to handle increasing global trade issues.

GATT was a temporary multilateral treaty, while the WTO is a permanent institution with member nations. GATT focused on tangible goods, whereas WTO also covers services and intellectual property. The WTO's dispute settlement system is also more efficient than GATT's.

The WTO promotes international trade by establishing a legal framework through agreements and contracts, ensuring smooth and fair trade practices. This benefits consumers with lower prices and diverse goods, and producers with new markets and employment opportunities.