The General Agreement on Trade and Tariffs (GATT), later became known as the World Trade Organization (WTO) is an international organization that aims to facilitate free trade, remove trade barriers, and promote economic growth and development.
GATT was established in 1947 as a response to the economic devastation caused by the Second World War. The agreement was signed by 23 countries and aimed to reduce tariffs, quotas, and other barriers to trade in order to promote economic growth and international cooperation.
Over time, GATT evolved and expanded to address a wide range of trade issues, including agricultural subsidies, intellectual property rights, and environmental regulations. In 1995, GATT was replaced by the World Trade Organization (WTO), which built on the achievements of GATT and expanded its scope to include new issues such as services and investment.
The WTO has now grown to include 164 member countries, representing over 98% of global trade. The organization`s mission is to promote free and fair trade by ensuring that member countries follow a set of rules and principles that govern international trade.
One of the key principles of the WTO is non-discrimination. This means that member countries must treat all other members equally and not discriminate between their trading partners. The WTO also aims to reduce trade barriers, including tariffs, quotas, and other measures that restrict trade and increase costs for consumers and businesses.
In addition to promoting trade liberalization, the WTO also plays an important role in resolving trade disputes between member countries. The organization has a system for settling disputes, which provides a way for countries to resolve their differences peacefully and avoid costly trade wars or other conflicts.
Overall, the World Trade Organization represents a major achievement in international cooperation and economic development. By promoting free and fair trade, the WTO has helped to increase global prosperity and reduce poverty around the world. Despite some criticism and challenges, the organization remains an important tool for promoting international economic growth and development.
