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General Agreements on Tariff and Trade (GATT) and the World Trade Organization (WTO): Basic Principles and Dispute Resolution

What are the basic principles of the General Agreement on Tariffs and Trade (GATT)? What are the basic principles behind the World Trade Organization (WTO)? In what ways are GATT and the WTO similar or different? How do the WTO and GATT settle disputes? Provide examples.

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General Agreements on Tariff and Trade:

The general agreements on tariffs and trade were a set of negotiations that was aimed at reducing the costs imposed on tariffs and abolishing of quotas in among a number of countries that were involved in trading. The general agreements on tariffs and trade also sought to enhance trading interactions within the nations without discrimination. This was made possible through the member countries practicing open markets towards each other. These agreements were first formalized in 1947 at Geneva by twenty three countries and it was later replaced by the World Trading Organization (WTO) in 1995. In the new trade agreements that were entailed in the World Trading Organization (WTO), 125 nations had signed the agreement. The World Trading Organization (WTO) thus accounted for 90% of trade across the international borders (Shaffer et al 2009).

The basic principles of the General Agreement on Tariffs and Trade (GATT) were to raise the standard of living of the member countries, to ensure that citizens of the member countries were employed and that all the resources available in the nations were also fully utilized. In addition to this, the basic principles of the General Agreement on Tariffs and Trade (GATT) were to ensure that the income of the member countries was steadily growing. The General Agreement on Tariffs and Trade was also aimed to meet the effective needs of the demand among the member countries. The other basic principles of the General Agreement on Tariffs and Trade (GATT) were to ensure that there was expansion of the production and exchange of goods and services among the member countries (Koo & Kennedy, 2005).

The basic principles behind the World Trade Organization (WTO) were to stipulate a trading system among countries that was free from discrimination. In this case the nations who signed the World Trade Organization (WTO) gave privileges equally among each other. The other basic principle behind the World Trade ...

Solution Summary

This solution discusses the general principles of the GATT and the WTO as well as dispute resolution processes in approximately 1000 words with four references.

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