Difference Between WTO and GATT!
The short answer is no. The WTO is the GATT plus a lot more. There have been eight rounds of trade negotiations since 1947. The first five rounds were of relatively short duration and dealt mainly with tariff reductions. The sixth, the Kermedy Round (1963-67), achieved deeper and wider tariff cuts, especially in industrial tariffs, and brought developing country concerns to the fore.
The seventh, the Tokyo Round, which lasted six years (1973 – 1979), cut tariffs substantially but also introduced a series of codes on non-tariff barriers (NTBs). The WTO was the result of the eighth round of negotiations, known as the Uruguay Round (1986-93).
The main differences between the GATT and the WTO are described by the WTO as follows:
i. The GATT was provisional. Its contracting parties never ratified the General Agreement, and it contained no provisions for the creation of an organisation.
ii. The WTO and its agreements are permanent. As an international organisation, the WTO has a sound legal basis because all members have ratified the WTO Agreements, and the agreements themselves describe how the WTO is to function.
iii. The WTO has “members.” GATT had “contracting parties,” underscoring the fact that officially the GATT was a legal text.
iv. The GATT dealt with trade in goods. The WTO deals with trade in services and intellectual property as well.
v. The WTO dispute settlement system is faster and more automatic than the old GATT system. Its rulings cannot be blocked.
vii. The WTO has introduced a trade policy review mechanism that increases the transparency of members’ trade policies and practices.