The function of GATT are given as follows: Most Favoured Nation (MFN) treatment
GATT lacked a proper institutional structure whereas WTO provides a more institutional framework for implementing its principles.Īlso, Read the Association of Southeast Asian Nations (ASEAN) here. WTO is far better than GATT in comparison.WTO has a strong legal basis as its agreements are permanent and all the member countries have approved it in their Parliaments.The dispute settlement of WTO is faster but their rulings can never be obstructed.GATT used to deal with trade in goods but the WTO also used to deal with intellectual property and cover services at the same time.GATT (General Agreement of Tariffs and Trade) was ad hoc and provisional in nature as well as never approved by the member countries Parliament.GATT (General Agreement of Tariffs and Trade) was replaced by the WTO (World Trade Organisation) because of the following reasons: Its preamble states that the “substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis.”Īlso, read other international organizations: International Solar Alliance Why was GATT replaced by the WTO? It aims to reduce trade barriers by removing tariffs, quotas, and subsidies while preserving significant regulations. This agreement helped in restoring economic health to the World after the disastrous effects of World War 2. GATT (General Agreement on Tariffs and Trade) was signed on October 30, 1947, in Geneva among 23 countries and took effect on January 1, 1948.
Difference between wto and gatt pdf pdf#
In this article, we shall discuss the GATT, its function, objectives, principles of GATT challenges faced by GATT, and the difference between GATT and WTO.Īlso, read the article on United Nations World Tourism Organisation for UPSC Exam here! Download the PDF on GATT here! What is GATT? The topic of GATT is important from the perspective of the UPSC IAS Examination and it falls under the General Studies Paper 2 and particularly in the International Relations Section.
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