What are the key differences between the GATT 1947 and the WTO Agreement regarding the trade in goods?

According to the WTO Cell - Industries, Commerce & Investment Department, Govt. of the Punjab, the GATT was an agreement for multilaterals regulating international trade in goods but it was an ad hoc institution which assumed this by default. Despite this disadvantage GATT (47) has been a useful institution which helped the initial trade to run smoothly organization' from 1948-1994. The GATT as an organisation no longer exists and has been replaced by the WTO. But the GATT as an international agreement still exists in a modified form of its original version and incorporating all the amendments that mere made from time to time till the creation of the WTO in 1995. The main differences between the GATT and the WTO are:

a)The GATT was ad hoc and provisional. It was never ratified by members' parliaments, and it contained no provisions for the creation of an International Organization. While, the WTO and its agreements are permanent. As an international organization, it has a sound legal basis because members have ratified the WTO agreements, and the agreements themselves describe how the WTO will be functioning to promote trade.

b)The WTO has members while, the signatories to the GATT were called “contracting parties”

c)The GATT dealt with trade in goods only, while, the WTO covers services as well as intellectual property.

d)The WTO has a more effective settling system.

Note: The above information is based on the Frequently Asked Questions (FAQs) booklet, issued by the WTO Cell Industries, Commerce & Investment Department, Govt. of the Punjab. Please visit the official website of the Govt. of Punjab for up-to-date information and details.

Tags: Trade, Business, WTO, Pakistan

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