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INTRODUCTION  The General Agreement on Tariffs and Trade (GATT).  India is one of the founder members of the IMF. . was born in 1948 as result of the international desire to liberalise trade. 1995. World Bank. GATT and the WTO.  The GATT was transformed into a World Trade Organisation (WTO) with effect from January. the predecessor of WTO.

it sought to resolve disagreements through consultation.  Prohibition of Quantitative Restrictions: GATT rules seek to prohibit quantitative restrictions as far as possible and limit restrictions on trade to the less rigid tariffs.  Consultation: By providing a forum for continuing consultation.GATT adopted the following principles:  Non-discrimination: The principle of non- discrimination requires that no member country shall discriminate between the members of GATT in the conduct of international trade. .



GATT was converted from a provisional agreement into a formal international organization called World Trade Organization (WTO). 1995 . Following the UR agreement. with effect from January 1.

The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement. signed by 123 nations on 15 April 1994. replacing the General Agreement on Tariffs and Trade (GATT). .World Trade Organization   World Trade Organization (WTO) is an inter Governmental organisation which regulates international trade. which commenced in 1948.

 The World Trade Organization (WTO) deals with the global rules of trade between nations.  WTO is an organisation for liberalising trade. predictably and freely as possible. Its main function is to ensure that trade flows as smoothly. a forum for governments to negotiate trade agreements and a place for them to settle trade disputes .

Functions of WTO  WTO is based in Geneva. Its functions are:  Administering the multilateral trade agreements which together make up the WTO  Acting as a forum for multilateral trade negotiations  Seeking to resolve trade disputes  WTO is not a “Free trade” institution. It permits tariffs and other forms of protection but only in limited circumstances. Switzerland. .

 Stability in the trading system: Member countries are committed not to raise tariff and non tariffs barriers arbitrarily.Principles of WTO  Non discrimination  Free Trade: Promote free trade between nations through negotiations. fair and undistorted competition.  Promotion of Fair Competition: WTO provides for transparent. .  It discourages unfair competitive practices such as export subsidies and dumping.

 Disputes settlement  It covers goods.  It was applied on a provisional bases  GATT covered only  Its activity are full goods. IPR.  WTO is an organization.Difference between GATT & WTO  GATT is an agreement.  It was designed with an attempt to establish  It is establishes to International Trade serve its own Organizations purpose. mechanism slow & at services. times in conclusive.  Dispute settlement system is fast . and permanent.