The formation of World Trade Organisation (WTO) was preceded by:

Correct option is C

Ans. (c) General Agreement on Trade and Tariffs

Sol.
The formation of the World Trade Organisation (WTO) was preceded by the General Agreement on Tariffs and Trade (GATT). GATT was established in 1947 to promote international trade by reducing tariffs and other trade barriers. It served as the primary framework for global trade negotiations and the regulation of international commerce until the creation of the WTO in 1995.

While GATT primarily focused on reducing tariffs, the WTO, which succeeded GATT, expanded the scope of global trade rules to include services, intellectual property, and dispute resolution mechanisms. The WTO was established after the conclusion of the Uruguay Round of trade negotiations, which led to the creation of a more comprehensive organization, replacing GATT's provisional nature with a permanent institution.

The WTO not only continues the work of GATT in terms of regulating trade in goods but also includes provisions for trade in services (through the General Agreement on Trade in Services, or GATS), intellectual property (through the Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS), and trade-related investment measures.

Information Booster:

• GATT (1947-1994): GATT was a multilateral agreement aimed at promoting international trade by reducing tariffs and eliminating quotas on goods.

• The Uruguay Round (1986–1994) led to the transformation of GATT into the World Trade Organisation (WTO), which came into existence on January 1, 1995.

• The WTO expanded the coverage of global trade rules to include intellectual property (TRIPS) and services (GATS), areas not fully addressed under GATT.

• The WTO is a global organization that facilitates trade negotiations, dispute resolution, and trade policy monitoring between member nations.

• The creation of the WTO marked a significant step in creating a more structured and binding international trading system.

• WTO Dispute Settlement Mechanism: The WTO introduced a more formal and structured dispute resolution process, providing member countries with a legal framework to resolve trade conflicts.