GATT vs. WTO: Know the Difference
By Shumaila Saeed || Published on February 5, 2024
GATT, or General Agreement on Tariffs and Trade, was a series of rules for international trade, while WTO, the World Trade Organization, is an institutional body governing global trade.
Key Differences
The General Agreement on Tariffs and Trade (GATT) was established post-World War II, focusing on reducing tariffs and other trade barriers. In contrast, the World Trade Organization (WTO) was formed later as a larger organization with a broader scope, not only encompassing GATT's principles but also addressing trade in services, intellectual property, and dispute resolution.
Shumaila Saeed
Feb 05, 2024
GATT functioned as a multilateral agreement, creating a framework for international trade negotiations and dispute resolution. The WTO, however, is a formal institution with a more structured system for handling global trade issues, encompassing the GATT as one of its agreements.
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Feb 05, 2024
Under GATT, a series of negotiation rounds took place, leading to significant tariff reductions. The WTO expanded on this foundation, offering a more robust mechanism for trade negotiations, along with a comprehensive dispute settlement system.
Shumaila Saeed
Feb 05, 2024
While GATT mainly dealt with trade in goods, the WTO's agreements cover a wider range of areas including trade in services (GATS) and intellectual property (TRIPS). This reflects the evolving nature of international trade and the need for more inclusive trade agreements.
Shumaila Saeed
Feb 05, 2024
GATT operated on a provisional basis and lacked a permanent institutional structure, whereas the WTO has a permanent membership and a more formalized structure, providing a stable platform for global trade governance.
Shumaila Saeed
Feb 05, 2024
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Comparison Chart
Scope of Rules
Primarily tariffs and trade barriers
Wider scope including services, IP, and dispute resolution
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Feb 05, 2024
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Negotiation Rounds
Specific negotiation rounds
Ongoing negotiations and revisions
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GATT and WTO Definitions
GATT
GATT served as a forum for trade negotiations.
Several trade rounds were conducted under GATT.
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Jan 18, 2024
WTO
WTO provides a framework for trade negotiations and dispute resolution.
The WTO has a comprehensive dispute settlement system.
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Jan 18, 2024
GATT
GATT addressed trade in goods specifically.
GATT's main focus was the liberalization of trade in goods.
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Jan 18, 2024
WTO
WTO operates based on member countries' agreements.
Countries adhere to WTO rules through mutual agreements.
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Jan 18, 2024
GATT
GATT aimed to reduce trade barriers and tariffs.
The GATT played a key role in decreasing global tariffs.
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Jan 18, 2024
WTO
WTO succeeded and expanded upon GATT.
The WTO was established to build upon and extend GATT's principles.
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Jan 18, 2024
GATT
GATT laid the groundwork for the WTO.
The principles established by GATT were foundational for the WTO.
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Jan 18, 2024
WTO
WTO is an international organization governing world trade.
The WTO sets and enforces global trade rules.
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Jan 18, 2024
GATT
GATT is a multilateral agreement regulating international trade.
Countries negotiated tariff reductions under GATT.
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Jan 18, 2024
WTO
WTO encompasses a wider scope than GATT.
WTO agreements cover not only goods but also services and intellectual property.
Shumaila Saeed
Jan 18, 2024
GATT
A United Nations agency created by a multinational treaty to promote trade by the reduction of tariffs and import quotas.
Shumaila Saeed
Jan 18, 2024
WTO
An international organization based in Geneva that monitors and enforces rules governing global trade
Shumaila Saeed
Jan 18, 2024
GATT
A United Nations agency created by a multinational treaty to promote trade by the reduction of tariffs and import quotas
Shumaila Saeed
Jan 18, 2024
Repeatedly Asked Queries
How did GATT differ from WTO in focus?
GATT focused mainly on goods, while WTO covers goods, services, and IP.
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Feb 05, 2024
What was GATT?
GATT was an international trade agreement focusing on tariff reduction.
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Feb 05, 2024
What is WTO?
WTO is an organization that oversees global trade rules and agreements.
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Feb 05, 2024
How does WTO enforce its rules?
Through a structured dispute resolution process and member agreements.
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Feb 05, 2024
Is WTO more comprehensive than GATT?
Yes, WTO has a broader scope than GATT.
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Feb 05, 2024
Was GATT provisional or permanent?
GATT was provisional, operating until the WTO was established.
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Feb 05, 2024
Did GATT have a dispute settlement mechanism?
GATT had a less formal mechanism compared to WTO's structured system.
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Feb 05, 2024
What role did GATT play in trade liberalization?
GATT significantly reduced tariffs and opened markets.
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Feb 05, 2024
Did GATT cover agricultural trade?
Yes, but its agreements were less comprehensive than WTO's.
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Feb 05, 2024
Was GATT an organization?
No, GATT was a set of rules, not a formal organization.
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Feb 05, 2024
Is WTO more powerful than GATT was?
Yes, WTO has more authority and a broader mandate.
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Feb 05, 2024
How do countries join the WTO?
Countries must negotiate terms and be accepted by existing members.
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Feb 05, 2024
What are WTO's main functions?
Overseeing global trade rules, facilitating negotiations, and dispute resolution.
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Feb 05, 2024
Was GATT successful in its goals?
Yes, GATT greatly reduced global tariffs and trade barriers.
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Feb 05, 2024
What are the main differences between GATT and WTO?
Key differences include scope, structure, and authority.
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Feb 05, 2024
Can countries still adhere to GATT?
GATT principles are incorporated into WTO agreements.
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Feb 05, 2024
Does WTO deal with environmental issues?
WTO agreements increasingly address environmental concerns.
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Feb 05, 2024
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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