GATT and WTO

 Following are the distinctions between GATT and WTO:

Basis of Distinction	GATT	WTO
1) Nature	GATT was ad-hoc and provisional,	WTO and its agreements are permanent
2) Member	GATT has contracting parties. Its scope was limited	WTO has more than 150 members. Its scope is far wider than under the GATT
3) Domestic	GATT allowed existing domestic legislation to continue even if it violated a GATT agreement	WTO does not permit any domestic legislation
4) Power	GATT was less powerful and dispute settlement was slow and less efficient.	WTO is more powerful than GATT and dispute mechanism is faster and more efficient.
5) Blocking Divison	Under the GATT dispute panel findings could be easily blocked	WTO members cannot block decisions arrived
6) Framework	GATT allowed for the existence of a number of important side agreements negotiated and concluded in various GATT rounds.	WTO provides a unified package of agreements to which all members committed
7) Role	Its role was confined to overseeing international trade in goods	WTO has expanded the role of GATT by including Trade in services and intellectual property rights within the multilateral trading system. It includes the environment as one of the major items.

The apex WTO body responsible for decision-making is the Ministerial Conference. It is expected to meet every two years.

The first WTO Ministerial conference is scheduled to be held, in Singapore before the end of 1996.

During the two years between meetings, the functions of the Conference are performed by the General Council. 

The General Council meets as a Dispute Settlement Body when it considers complaints and takes necessary steps to settle disputes between member countries.

It is also responsible for carrying out reviews of the trade policies of individual countries on the basis of the reports prepared by the WTO secretariat.

The General Council is assisted in its work by the:

• Council for Trade in Goods, which oversees the implementation and operation of GATT 1994 and its associate agreements;

• Council for Trade in Services, which oversees the implementation and operation of GATS; and

• Council for TRIPs which oversees the operation of the agreement on TRIPs.

It also indicates the various committees established by the WTO Agreement itself and the other committees that have been established for detailed work at the operational level under the various associate agreements.

Functions of WTO-The Agreement establishing WTO provides that it should perform the following four functions. 

(1) First, it shall facilitate the implementation administration and operation of the Uruguay Round legal instruments and of any new agreements that may be negotiated in the future.

(2) Second, it shall provide a forum for further negotiations among member countries on matters covered by the agreements as well as on new issues falling within its mandate.

(3) Third, it shall be responsible for the settlement of differences and disputes among its member countries.

(4) Fourth, it shall be responsible for carrying out periodic reviews of the trade policies of its member’s countries.

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