The difference between GATT and WTO is thatGroup of answer choicesGATT allowed member nations to avoid any ruling they did not likeGATT has an elaborate institutional mechanism of councils and committeesWTO is a temporary entityWTO has always been considered a partial agreement among member nations
Question
The difference between GATT and WTO is thatGroup of answer choicesGATT allowed member nations to avoid any ruling they did not likeGATT has an elaborate institutional mechanism of councils and committeesWTO is a temporary entityWTO has always been considered a partial agreement among member nations
Solution 1
The difference between GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization) is as follows:
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GATT allowed member nations to avoid any ruling they did not like: This is true to an extent. GATT was a multilateral agreement regulating international trade. Its purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. However, it lacked a strong institutional structure and enforcement mechanism, which often allowed member nations to avoid rulings they did not agree with.
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GATT has an elaborate institutional mechanism of councils and committees: This is not accurate. As mentioned above, one of the main criticisms of GATT was its lack of a strong institutional structure.
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WTO is a temporary entity: This is not correct. The WTO, established in 1995, is a permanent international organization designed to supervise and liberalize international trade. It replaced GATT but retained much of its structure and trade rules.
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WTO has always been considered a partial agreement among member nations: This is not accurate. The WTO is a full-fledged international organization with a more structured and formalized process than GATT. It has a broader scope, covering trade in services and intellectual property rights, and a stronger dispute resolution process.
In summary, the main difference between GATT and WTO lies in their structure and enforcement mechanisms. GATT was less formal and had weaker enforcement mechanisms, while the WTO has a stronger institutional structure and enforcement mechanisms.
Solution 2
The difference between GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization) is as follows:
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GATT was a legal agreement between countries, aimed at promoting international trade by reducing or eliminating trade barriers such as tariffs or quotas. However, it did not have a strong institutional structure and its rulings were not binding on member nations. This means that member nations could avoid any ruling they did not like.
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On the other hand, WTO, which replaced GATT in 1995, has a more elaborate institutional mechanism of councils and committees. It is a global international organization dealing with the rules of trade between nations. Its rulings are binding on member nations.
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WTO is not a temporary entity. It is a permanent institution with a set of rules and procedures.
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While GATT was often considered a partial agreement because it did not cover all aspects of international trade, WTO has a broader scope and covers a wide range of trade issues.
So, the correct answer is that GATT allowed member nations to avoid any ruling they did not like and WTO has an elaborate institutional mechanism of councils and committees.
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