From GATT 1947 to WTO
This paper addresses the reasons why it was necessary to replace GATT 1947, the main differences between GATT 1947 and the WTO as an improvement of GATT 1947. These issues are discussed in detail beginning with a brief history of GATT 1947, its functions, achievements and failures.
The General Agreement on Tariffs and Trade (GATT) was first negotiated in Geneva, Switzerland in 1947 with the intention of increasing global trade by reducing tariffs and nontariff trade barriers. The GATT provides a code of conduct for global commerce and a framework for occasional multilateral negotiations on trade liberalization and growth. The Uruguay Round Agreement that resulted from negotiations which stretched from 1986 to 1993 among more than 100 nations established the World Trade Organization (WTO) to replace the GATT. The WTO formally took the place of the GATT on January 1, 1995. The WTO governs the GATT 1947, the amendments in GATT resulting from the Uruguay Round negotiations, conflict resolution among WTO member countries, and a range of agreements resulting from other prior multilateral trade negotiations.