Abstract
International trading system and future of WTO is anticipated to see several changes down the years, orienting itself to the needs of the time.The International trading system has undergone several changes over the years. As a future of GATT, the WTO came into being with enhanced features.
The World Trade Organization is responsible for keeping an eye on the trading activities of its members. Experts are of the opinion that if the procedures adopted in getting accession to the WTO are eased, more countries can become members of World Trade Organization. The WTO has been entrusted with the job of looking after norms pertaining to trading activities and watches out for any kind of violation of trade rules by countries. The WTO is constantly revamping its norms depending on the needs of the economies around the globe.
Difference between GATT and WTO:
The World Trade Organization was established to replace GATT or General Agreement on Tariffs and Trade. The WTO differs from GATT in the following two ways.Legally bound:
During the jurisdiction of GATT, the nations did not have any legal binding. To make it clearer, in case of WTO, the norms laid by it necessitates the countries to formulate laws after any agreement is entered into with WTO. These laws have to be followed up and complied with. For instance, in case of TRIPS or Trade Related Intellectual Property Rights. These laws have to be practiced on copyrights, trademarks, patents, trade secrets and geographical indications.The other difference between WTO and GATT is in the context of DSM or Dispute Settlement Mechanism. During the times of GATT, if a dispute occurred, it could have recurred again and the most GATT norms could do is interrupt and try to settle matters between the conflicting or disputing nations. In case of WTO, the nature of dispute has to be put in writing and the necessary steps are taken. The countries who become victims of norms violation are allowed to retaliate against those nations.
