International Business Gatt to Wto

Topics: General Agreement on Tariffs and Trade, International trade, World Trade Organization Pages: 2 (426 words) Published: June 9, 2011
The General Agreement on Tariffs and Trade also known as GATT was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). GATT was formed in 1949. GATT was a multilateral trade agreement The General Agreement on Tariffs and Trade regulated trade among about 150 countries. GATT was a set of rules agreed upon by nations; the WTO is an institutional body. The WTO expanded its scope from traded goods to trade within the service sector and intellectual property rights. Although it was designed to serve multilateral agreements, during several rounds of GATT negotiations (particularly the Tokyo Round) plurilateral agreements created selective trading and caused fragmentation among members. GATT became the agreement and the organization for establishing and enforcing, disputing settlements, for international trade rules, and lasted until 1993; when it was replaced by the World Trade Organization in 1995. WTO arrangements are generally a multiparty agreement settlement mechanism of GATT. While the GATT rules and regulations worked well enough, the leading members wished to replace it with a world-wide trade-regulating body like the WTO for a number of reasons. These reasons came from the rules created, one of these being the rules and regulations of the GATT which were; one protecting the domestic industry by tariffs only. First, the GATT rules applied to trade only in merchandise goods. In addition to goods, the WTO covers trade in services and trade-related aspects of intellectual property through the agreement on Trade-related Aspects of Intellectual Property Rights also known as TRIPs. Second, while GATT was a multilateral struture, by the 1980s many new agreements of an on different issues, and therefore selective nature had been added. The agreements which constitute the WTO are almost all mutual and, therefore, involve commitments for the entire...
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