Genral Agreement On Tariffs and Wto

GENRAL AGREEMENT ON TARIFFS AND TRADE (GATT)
GATT has its origin in 1947 at a conference in Geneva.
The objective of GATT are:
 To raise standard of living.

 To ensure full employment and a large and steadily growing volume of real income and effective
demand.
 To develop the full use of the resources of the world.
 To expand production and international trade
In order to implement the final act of Uruguay round agreement of GATT the world trade organization
(WTO) was established on January 1,1995.
The GATT was not an organization but it was only a legal agreement on the other hand, TO is design to
play the role of a watchdog in the spheres of trade in goods, trade in services, foreign investment,
intellectual property rights etc.Its functions as set out in article III are:
 The WTO shall facilitate the implementation, administration and operation and further the objective
of this agreement on the multinational trade agreement and shall also provide the framework for
implementation, administration ,and operation of the plurilateral trade agreements.
 The WTO shall provide the forum for negotiation among its members concerning their multilateral
trade relations in matters dealt with under the agreements in the annexures to this agreement.
 The WTO shall administered the understanding on roots and procedures governing the settlement
of disputes.
 The WTO shall administered the trade policy review machanism,with view to achieving greater
coherence in global economic policy –making ,the WTO shall cooperate ,as appropriate, with the
international monetary fund and with the international Bank for reconstruction and development
and its affiliated agencies.
Differences Between GATT and WTO
GATT WTO
 It is a set of rules and multilateral agreement.  it is a permanent institution.
 It was designed with an attempt to establish  It is established to serve its own purpose.
international trade organization.  Its activities are full and permanent.
 It was applied on a provisional basis.  Its rule are applicable to trade in
 It rules are applicable to trade in merchandise merchandise and trade in services and trade
goods. in related aspects of intellectual property.
 GATT was originally a multilateral instrument,  Its agreements are almost multilateral .
butplurilateral agreement were added at a  Its disputes settlement system is fast and
later stage. automatic.
 its dispute settlement system was not faster 
and automatic.
Function of WTO: The world trade organization is expected to play its role in the following areas :
 WTO administrators’ the 28 agreements contained in the final act and a number of plurilateral
agreements and government procurement through various councils and committees.
 WTO oversees the implementation of the significant tariff cut and also reduction of non- tariff
measures agreed to in the trade negotiations.
 WTO examines regularly the trade regimes of individual member countries. Thus ,it act as a
watchdog of international trade.
 WTO provide for dispute settlement court in order to adjudicate the trade disputes which could not
be solved through bilateral talks between member countries. The disputes are examined by the
panel of independent expert in view of WTO rules and provide rulings. This procedure is laid down in
order to provide equal treatment for all trading partners and to en courage member countries to
live up to their obligation.
 WTO acts as a management consultant for world trade. The economist of the WTO observed
the pulse of the global economy and provide studies on the main trade issues.
 Technical co-operation and training division is established in the WTO’s secretariat in order to help
the developing counties in the implementation of Uruguay round results.
 WTO co-operate with other international institutions like IMF,IBRD(WORLD BANK) AND ILO involved
in global economic policy making.
 WTO oversees the national trade policies of member government.
ORGANISATION STRUCTURE OF THE WTO:
The oragnisation structure of the WTO is designed based on four hierarchical levels. The hierarchies
from the top to bottom are as follows:
 Ministerial conference
 General council
 Councils
 Committees and management bodies.

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GENRAL AGREEMENT ON TARIFFS AND TRADE (GATT)

GATT has its origin in 1947 at a conference in Geneva.

The objective of GATT are:

 To raise standard of living.

Differences Between GATT and WTO

ORGANISATION STRUCTURE OF THE WTO:

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