Which organization did the WTO replace?

Which organization did the WTO replace?

• A. IMF
• B. World Bank
• C. UNCTAD
• D. GATT

Answer: (D)

The main idea is that the World Trade Organization became the formal body for multilateral trade rules by taking over the framework that had been run under an earlier agreement. The General Agreement on Tariffs and Trade started in 1947 as a provisional set of rules to promote free trade and reduce tariffs. It wasn’t a full-fledged organization with its own permanent structure. In 1995, the Marrakesh Agreement established the WTO, embedding and expanding those rules, and adding a formal dispute settlement system plus broader coverage (goods, services, and intellectual property). So, the WTO replaced GATT as the permanent, legal framework for world trade. The IMF and World Bank are financial institutions, and UNCTAD is a UN body on trade and development; none of these were replaced by the WTO.

The main idea is that the World Trade Organization became the formal body for multilateral trade rules by taking over the framework that had been run under an earlier agreement. The General Agreement on Tariffs and Trade started in 1947 as a provisional set of rules to promote free trade and reduce tariffs. It wasn’t a full-fledged organization with its own permanent structure. In 1995, the Marrakesh Agreement established the WTO, embedding and expanding those rules, and adding a formal dispute settlement system plus broader coverage (goods, services, and intellectual property). So, the WTO replaced GATT as the permanent, legal framework for world trade. The IMF and World Bank are financial institutions, and UNCTAD is a UN body on trade and development; none of these were replaced by the WTO.