GALGOTIAS UNIVERSITY
International Trade Law
IA-1
Submitted TO: - Submitted By:
Ms. Parul Kaushik Dipanshi Goel
(21GSOL1010007)
Q. The Uruguay Round of Negotiations finally led to the creation of WTO‖. In the light of this
statement briefly discuss the salient achievements of Uruguay Round.
The Uruguay Round of Negotiations, conducted under the General Agreement on Tariffs and
Trade (GATT), concluded in 1994 and resulted in the establishment of the World Trade
Organization (WTO). This landmark agreement brought about several significant achievements in
international trade. Some of the salient accomplishments of the Uruguay Round include:
1. Establishment of the WTO: The Uruguay Round led to the creation of the World
Trade Organization on January 1, 1995. The WTO replaced the GATT and expanded
its scope to cover not only trade in goods but also trade in services and intellectual
property.
2. Trade in Goods (GATT 1994): The agreement established new rules for
international trade in goods, addressing issues such as tariff reductions, agricultural
subsidies, and non-tariff barriers. The implementation of the General Agreement on
Tariffs and Trade (GATT) 1994 aimed to promote fair and open trade practices.
3. Agriculture Agreement: The Uruguay Round's Agriculture Agreement sought to
reform global agricultural trade by addressing issues such as subsidies, market access,
and export competition. It aimed to create a more level playing field for agricultural
products in international markets.
4. Trade-Related Aspects of Intellectual Property Rights (TRIPS): TRIPS was a
significant component of the Uruguay Round, establishing international standards for
the protection of intellectual property rights. It aimed to promote innovation and
technology transfer while ensuring fair and equitable access to knowledge.
5. Trade-Related Investment Measures (TRIMS): TRIMS addressed certain
investment measures that could distort international trade. The agreement aimed to
eliminate trade-distorting investment practices and contribute to a more open and
transparent investment environment.
6. Trade in Services Agreement (GATS): GATS was a pioneering effort to establish
rules for international trade in services. It aimed to liberalize trade in sectors such as
telecommunications, finance, and professional services, fostering increased global
economic integration.
7. Dispute Settlement Mechanism: The Uruguay Round strengthened the dispute
settlement mechanism, providing a more effective and binding process for resolving
trade disputes among member countries. This contributed to the enforcement of trade
rules and the resolution of conflicts in a systematic manner.
The achievements of the Uruguay Round laid the foundation for the modern global trading system
under the WTO, fostering increased cooperation among nations and promoting a more predictable
and open international trade environment.
Q. Discuss briefly the developments leading to the establishment of WTO, 1995. Also discuss
the differences between WTO 1995 and GATT 1948
The establishment of the World Trade Organization (WTO) in 1995 marked a significant
evolution from the General Agreement on Tariffs and Trade (GATT) that had governed
international trade since 1948. Several developments led to the creation of the WTO:
1. Uruguay Round of Negotiations (1986-1994): The Uruguay Round, launched in
1986, was a series of multilateral trade negotiations conducted under the GATT
framework. It was the eighth round of negotiations and aimed to address emerging
challenges and expand the scope of international trade rules. The negotiations covered
a wide range of issues, including agriculture, services, intellectual property, textiles,
and dispute settlement.
2. Expansion of Agenda: Unlike previous GATT rounds, the Uruguay Round extended
its focus beyond traditional trade in goods to include new areas like services,
agriculture, and intellectual property. This broadened agenda reflected the changing
nature of the global economy and the need for comprehensive trade rules.
3. Establishment of New Agreements: The negotiations resulted in the creation of
several new agreements, such as the Agreement on Agriculture (AoA), the Agreement
on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Agreement
on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). These
agreements addressed issues that were not adequately covered by the GATT.
4. Institutional Reforms: The Uruguay Round brought about institutional reforms,
including the establishment of the WTO as a permanent international organization.
The WTO was designed to provide a more structured and comprehensive framework
for governing international trade, encompassing not only goods but also services and
intellectual property.
Differences between WTO (1995) and GATT (1948):
1. Scope of Coverage: While GATT primarily focused on trade in goods, the WTO
expanded its scope to cover trade in services and intellectual property. The WTO's
agreements, including the General Agreement on Trade in Services (GATS) and the
Trade-Related Aspects of Intellectual Property Rights (TRIPS), reflect this broader
mandate.
2. Institutional Structure: The WTO is a permanent international organization with a
more formal and institutionalized structure compared to the GATT, which operated as
an interim arrangement. The WTO has a Secretariat, a Ministerial Conference, and a
Dispute Settlement Body, providing a more robust framework for managing trade-
related issues.
3. Dispute Settlement Mechanism: The WTO's Dispute Settlement Understanding
(DSU) is more comprehensive and binding than the dispute resolution mechanisms
under GATT. The DSU provides a structured process for resolving trade disputes
among member countries, enhancing the enforcement of trade rules.
4. Decision-Making Process: The decision-making process in the WTO is more
inclusive, with decisions made by consensus among member countries. GATT
operated on a more informal and consensus-driven basis, but the WTO's formalized
decision-making process contributes to a more stable and predictable trading
environment.
In summary, the establishment of the WTO in 1995 represented a major shift from the GATT
system, adapting to the changing dynamics of global trade and incorporating a broader set of rules
to govern international economic relations.
