The full form of GATT is General Agreement on Tariffs and Trade. Friends, in today’s article we are going to know about the difference between GATT and WTO and also know the objectives of GATT. So let’s discuss in details.
What is GATT?
Meaning of GATT – The General Agreement on Tariffs and Trade (GATT) is a multilateral trade treaty (agreement) among countries to regular international trade and tariff in accordance with specific rules norms or code of conduct.
It was born in 1948 as a result of the international desire of liberalize trade.
Difference between GATT and WTO
The main difference between GATT and WTO are mentioned in the following grounds –
|(i) GATT was provisional.||(i) WTO and its argument are permanent.|
|(ii) GATT has contracting parities.||(ii) WTO has members.|
|(iii) The contracting party violated the GATT agreement.||(iii) WTO does not permit this.|
|(iv) GATT was less powerful.||(iv) WTO is more powerful than GATT. No country can violate the ruling of the WTO.|
|(v) The full form of GATT is General Agreement on Tariffs and Trade.||(v) The full form of WTO is World Trade Organization.|
Objectives of GATT
The main important objectives of GATT are mentioned in the following grounds –
• The international trade should be carried on the basis of non-discrimination and transparence.
• The protection of the domestic industries should be given only by means of tariff and by no other means.
• The most favoured nation principle should be followed by all the members.
• The multilateral negotiations should be carried to reduce tariff and non-tariff barriers to the trade.
• To ensure the full use of world resources.
So friends, this was the concept of the difference between GATT and WTO and the objective of GATT. Hope you get the full details about it and hope you like this article.
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