Emergence of the multilateral trading system•Concept began with a proposal to establish an International Trade Organization(ITO) immediately after the Great Depression and World War II. •Suggestion to form ITO was pushed forward with the proposal to form WB and IMF•WB and IMF came into effect, ITO never came into being.
Emergence of the multilateral trading system•However, as a substitute to this concept, 23 countries originally signed General Agreement on Tariffs and Trade (GATT)•GATT entered into force in January 1948•Served as a framework for multilateral tariff negotiations and liberalization•It was succeeded by WTO in 1995
WTO•The WTO Agreements cover not only trade in goods, but also trade in services and trade-related aspects of intellectual property rights. The original GATT still exists as the WTO’s general agreement on trade in goods.•The common goal of multilateral trade liberalization in the context of a rules-based system resulted in the continuous accession of new countries to the organization, adding to the heterogeneity of the Membership. •The ability of the GATT/WTO system to accommodate the different needs of its Members has been an important factor in its success.
The WTO•The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.