Differences between GATT and WTO
The World Trade Organization (WTO) is more powerful than General Agreement on Tariffs and Trade (GATT) with enlarged functions in dealing with world economic affairs. Hence, the WTO cannot be simply regarded as the extension of GATT. It completely replaces GATT by sporting a totally different outlook.
Differences between GATT & WTO
The following are the principal differences between the GATT and WTO.
| GATT | WTO |
|---|---|
| 1. The GATT was a set of rules. It has no institutional foundation and is just a multilateral agreement. It functioned only with a small associate secretariat. | 1. WTO is a powerful body with enlarged functions. WTO functions with its own secretariat. |
| 2. GATT was adhoc and provisional. Only after forty years, various governments chose to treat it as a permanent commitment. | 2. WTO commitments are full and permanent. |
| 3. GATT was applied to trade in merchandise goods. | 3. WTOs covers trade in services as well as trade related aspects of intellectual property rights (TRIPs). |
| 4. GATT was selective in nature, it was a multilateral instrument and in 1980s many new agreements of a plurilateral nature were added. | 4. WTO involves commitments for the entire membership by remaining multilateral in nature. |
| 5. GATT was less powerful and its dispute settlement was slow and less efficient. Its rulings could be easily blocked. | 5. WTO is more powerful than GATT. The WTO dispute Settlement is faster and effective and thus much less susceptible to blockages than GATT. |
| 6. GATT had contracting parties. | 6. WTO has members. |
| 7. Existing domestic legislation are allowed to continue by the GATT System even if it violates the agreement. | 7. WTO does not permit this. |
The above table lists out various differences between WTO & GATT. Read the following article which explains various objectives and functions of WTO.
