What is the Difference Between GATT and WTO?

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) are two distinct entities that play significant roles in international trade. Here are the key differences between them:

1. Nature: GATT is an international treaty with a temporary international existence, whereas the WTO is a permanent body whose authority has been ratified by its many member nations.
2. Scope: GATT primarily focused on reducing tariffs on goods. In contrast, the WTO covers a broader range of topics, including services, intellectual property, and agriculture.
3. Dispute Settlement: The WTO dispute settlement system is faster and more automatic than the old GATT system, with its rulings unable to be blocked.
4. Organization: GATT had no institutional foundation, whereas the WTO is a permanent intergovernmental organization with a clear organizational structure.
5. Evolution: The WTO was established in 1995 to replace GATT, as it was designed to deal with the evolving international economic landscape and provide a more comprehensive framework for international trade.

In summary, while GATT and WTO share common objectives, there are important distinctions between them, particularly in terms of scope, organization, and dispute settlement mechanisms.

Comparative Table: GATT vs WTO

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) are both significant milestones in the evolution of the global trading system. Here is a comparison table highlighting the key differences between GATT and WTO:

GATT was an international agreement established in 1947 to promote international trade by reducing tariffs and other trade barriers. On the other hand, the WTO is an international organization established in 1995 to regulate global trade, providing a more comprehensive and institutionalized framework for trade rules and dispute settlements.