1.

Introduction
The General Agreement on Tariffs and Trade (GATT) emerged in 1947 as a landmark
international treaty aimed at regulating and promoting global trade. GATT primarily
focused on reducing tariffs and trade barriers among member countries, providing a
framework for multilateral trade negotiations. While it contributed significantly to
post-World War II economic recovery and the expansion of international trade, it had
certain limitations. GATT's limitations included its inability to effectively address non-tariff
trade barriers, such as subsidies and intellectual property issues. Additionally, GATT
lacked a dispute settlement mechanism with binding decisions, making enforcement
challenging. The GATT framework was also ill-equipped to address the changing
landscape of international trade, including the growing service sector and the need for
stronger intellectual property protection.

In response to these shortcomings, the World Trade Organization (WTO) was established
in 1995 as a more comprehensive and robust trade organization. The WTO not only carried
forward the principles of GATT but also introduced new agreements and mechanisms to
address the evolving challenges in international trade. This transition from GATT to WTO
marked a significant shift in the global trade landscape, ushering in an era of more
comprehensive and legally binding trade rules.

2. Factors Leading to the Shift

GATT, which emerged in 1947, was a significant international treaty aimed at regulating
and promoting global trade. Its main focus was on reducing tariffs and trade barriers among
member countries, creating a framework for multilateral trade negotiations. GATT played a
crucial role in the post-World War II economic recovery and the expansion of international
trade. However, GATT had certain limitations. It struggled to effectively address non-tariff
trade barriers, such as subsidies and intellectual property issues. Additionally, GATT
lacked a dispute settlement mechanism with binding decisions, which made enforcement
challenging. The framework also faced difficulties in adapting to the changing landscape of
international trade, including the growing service sector and the need for stronger
intellectual property protection.
These limitations eventually led to the creation of the World Trade Organization (WTO) in
1995, which built upon the foundations of GATT and aimed to address some of these
shortcomings. The WTO introduced a more comprehensive framework for global trade,
including stronger dispute settlement mechanisms and a broader scope of trade-related
issues. The World Trade Organization (WTO) was established in 1995 as a more
comprehensive and robust trade organization. The WTO not only carried forward the
principles of GATT but also introduced new agreements and mechanisms to address the
evolving challenges in international trade. This transition from GATT to WTO marked a
significant shift in the global trade landscape, ushering in an era of more comprehensive
and legally binding trade rules.

3. Creation of the WTO

The World Trade Organization (WTO) was established in 1995 as a successor to the
General Agreement on Tariffs and Trade (GATT). The WTO was created to enhance and
regulate global trade by providing a comprehensive framework for trade negotiations and
resolving trade disputes. One of the key objectives of the WTO is to promote the
liberalization of international trade by reducing barriers such as tariffs and quotas. It also
aims to ensure that trade is conducted in a fair and transparent manner, with member
countries adhering to agreed-upon rules and regulations.

The WTO has a dispute settlement mechanism that allows member countries to resolve
trade disputes in a structured and impartial manner. This mechanism helps to maintain the
stability and predictability of the global trading system. Additionally, the WTO covers a
wide range of trade-related issues, including agriculture, services, intellectual property, and
trade facilitation. It provides a platform for member countries to negotiate and make
decisions on these issues, with the goal of fostering economic growth and development.
Overall, the creation of the WTO marked a significant milestone in international trade,
providing a more comprehensive and robust framework for global economic cooperation.

4. Subsequent Development
The establishment of the World Trade Organization (WTO) in 1995 marked a significant
milestone in the global trading system, replacing the General Agreement on Tariffs and
Trade (GATT). Since its inception, the WTO has seen several key developments and
improvements, impacting various aspects of international trade, including dispute
settlement, trade policy review, and the scope of its coverage.

Dispute Settlement Mechanism (DSM):

The World Trade Organization's Dispute Settlement Mechanism (DSM) revolutionized the
way trade disputes are resolved. It introduced a formal and structured process that is more
efficient, predictable, and transparent compared to the previous system under GATT. The
DSM has played a crucial role in promoting compliance with trade rules and preventing
trade wars by providing a fair platform for member states to address their concerns.
Notable cases like the Boeing-Airbus dispute and the US-China trade tensions have
demonstrated the importance and effectiveness of the DSM in maintaining a stable global
trading system.

Trade Policy Review Mechanism (TPRM):

The Trade Policy Review Mechanism (TPRM) introduced by the WTO is indeed a vital
improvement. It promotes transparency and accountability by requiring member states to
regularly report on their trade policies and practices. These reviews foster an open dialogue
on trade policies, reducing protectionism and ensuring adherence to WTO rules. The
TPRM has greatly contributed to the stability of the global trading system.
Expansion of Scope:
The WTO's scope has expanded significantly since its establishment, encompassing new
areas of trade regulation.

Intellectual Property (TRIPS):

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) has had
a significant impact. It set global standards for protecting intellectual property, which has
encouraged innovation and trade in sectors like pharmaceuticals, software, and
entertainment. However, there have been concerns about access to essential medicines and
knowledge, leading to criticism of the agreement. It's a complex issue with important
considerations on both sides.
Services (GATS):
The General Agreement on Trade in Services (GATS) was a groundbreaking step in
bringing services into trade agreements. It has facilitated liberalization in sectors like
finance, telecommunications, and healthcare, promoting competition and cross-border
expansion. However, achieving comprehensive liberalization in services still poses
challenges. It's an ongoing process that requires careful consideration and collaboration
among member states..
Agriculture (AoA):
The Agreement on Agriculture (AoA) was designed to tackle trade-distorting practices in
the agricultural sector. It introduced commitments to reduce subsidies and tariffs,
promoting fair competition in global agricultural markets. However, negotiations in the
agricultural sector have been contentious, with ongoing debates surrounding market access,
domestic support, and export competition. It's a complex issue that requires careful
consideration and ongoing discussions among member states.
Trade Facilitation Agreement (TFA):
The Trade Facilitation Agreement (TFA) is indeed a significant development. It aims to
simplify and harmonize customs procedures, ultimately reducing trade costs. By
streamlining customs processes, the TFA has the potential to boost global trade by
lowering barriers and improving the efficiency of cross-border trade. It's an exciting step
towards facilitating smoother and more efficient international trade.
Special and Differential Treatment (SDT):
Absolutely! The WTO understands the importance of flexibility in its agreements to cater
to the diverse needs of developing countries. Special and Differential Treatment (SDT)
provisions allow developing nations to implement trade policies and measures at a pace
that aligns with their economic and development constraints. This recognition helps
promote inclusivity and ensures that all countries can participate in global trade on fair and
equitable terms.
Environmental Agreements:
The WTO has indeed placed an increasing emphasis on environmental concerns.
Agreements like the Trade-Related Aspects of Environmental Goods and Services (EGS)
aim to promote trade in eco-friendly products. WTO members have also recognized the
intersection of trade and environmental issues, highlighting the importance of sustainable
trade practices. It's great to see the growing recognition of the need for environmentally
conscious trade.
E-Commerce Negotiations:
With the rise of digital trade and e-commerce, the WTO has indeed initiated negotiations to
develop rules governing this domain. These talks aim to create a framework that fosters the
growth of digital trade while addressing issues related to data flows, privacy, and
cybersecurity. It's an exciting development that recognizes the importance of adapting trade
rules to the digital era.

In conclusion, the establishment of the WTO has brought about several key developments
and improvements in international trade. The DSM and TPRM have enhanced dispute
resolution and transparency, contributing to a more stable trading environment. The
inclusion of new areas like intellectual property, services, and agriculture has expanded the
scope of trade agreements and influenced various sectors. While the WTO has faced
challenges, such as stalled negotiations and criticisms of its effectiveness, it remains a
central institution in regulating global trade and promoting cooperation among its member
states. The ongoing evolution of the WTO will continue to shape the future of international
trade.
5. Challenges and Criticisms
The World Trade Organization (WTO) has faced several challenges and criticisms since its
inception, which have raised concerns about its effectiveness, decision-making processes,
and inclusivity. Some of the key challenges and criticisms are as follows:

1 Effectiveness and Enforcement:

One of the primary challenges the WTO faces is the effectiveness of its agreements and the
enforcement of its rulings. Some argue that the dispute settlement mechanism can be slow
and cumbersome, making it challenging to enforce rulings, especially when countries are
reluctant to comply. The lack of a robust mechanism for dealing with non-compliance has
raised questions about the WTO's ability to effectively resolve trade disputes. It's an
ongoing issue that requires careful consideration and potential reforms to strengthen the
effectiveness and enforcement of WTO agreements.

2. Advances in Trade Technology:

advancements, like the internet and modern communication tools, have transformed the
way trade is conducted. GATT's rules and agreements were ill-equipped to handle issues
related to e-commerce, digital trade, and intellectual property rights in the digital age. The
need for a trade organization that could address these emerging issues became evident.
That's why the WTO has been working to develop rules and frameworks that adapt to the
changing landscape of global trade. It's exciting to see how trade and technology are
evolving together.

3. Comprehensive Trade Organization:

GATT primarily focused on tariff reduction and eliminating trade barriers for goods. While
it made progress in this area, it lacked provisions to comprehensively address non-tariff
barriers, subsidies, trade in services, and intellectual property rights. This gap in GATT's
coverage created a need for a more comprehensive trade organization that could effectively
address these issues. That's where the WTO stepped in to provide a broader framework for
global trade. It's all about adapting to the changing needs of the global economy.

4. The Pivotal Uruguay Round:

The Uruguay Round of negotiations, conducted under the auspices of GATT in the 1980s
and early 1990s, served as a pivotal moment in the transition to the WTO. These
negotiations resulted in the creation of the WTO and a new set of agreements that
significantly expanded the scope of international trade regulation. The Uruguay Round
addressed issues such as services, agriculture, intellectual property, and dispute settlement.
The Agreement on Agriculture, the Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS), and the Agreement on Trade in Services (GATS) were
instrumental in broadening the WTO's mandate. It was a crucial step forward in shaping
the modern landscape of international trade.

The Uruguay Round negotiations were a testament to the international community's

recognition of the need for a more robust and comprehensive trade organization. The
agreements reached during this round laid the foundation for the establishment of the
WTO, which officially began its operations in January 1995. The creation of the WTO
marked a significant shift in the international trade regime, reflecting a more modern and
inclusive approach to global trade governance, capable of addressing the complexities of
the 21st-century global economy. It's fascinating to see how the world came together to
shape the future of trade.
6.Conclusion
The transition from the General Agreement on Tariffs and Trade (GATT) to the World
Trade Organization (WTO) marked a fundamental shift in the realm of international trade
law. GATT, while instrumental in promoting post-World War II economic recovery, faced
limitations in addressing the evolving complexities of global trade. The establishment of
the WTO in 1995 was a response to these limitations, ushering in a new era of
comprehensive and binding trade regulation. The key factors leading to this transition,
including changes in the global economy, advances in trade technology, and the need for a
more encompassing trade organization, were exemplified during the pivotal Uruguay
Round negotiations. These negotiations resulted in the creation of the WTO and introduced
vital developments, such as a robust dispute settlement mechanism and the inclusion of
new areas like intellectual property, services, and agriculture in the WTO's scope. The
WTO's significance lies in its role as a custodian of international trade norms and its
capacity to address a broader spectrum of trade issues in the modern, interconnected world.
It continues to evolve to meet the challenges of contemporary global trade, reaffirming its
central place in the framework of international trade law.

Overall, the transition from GATT to the WTO was a necessary step in adapting to the
changing dynamics of the global economy and ensuring a more comprehensive and
inclusive approach to international trade regulation. It's fascinating to see how trade
governance has evolved over time, and the WTO remains a critical institution in shaping
the future of global trade.