NAFTA removes tariffs and other trade barriers between the United States, Mexico and Canada. It removes barriers to investment, strengthens intellectual property protection and allows the free provision of services to most services, including across borders. While THE GATT was a set of rules agreed upon by nations, the WTO is an intergovernmental organization with its own headquarters and staff, whose scope covers both traded goods and trade in the service sector and intellectual property rights. Although used for multilateral agreements, multilateral agreements have led to selective exchanges and fragmentation among members in several rounds of negotiations (particularly the Tokyo Round). WTO agreements are generally a multilateral mechanism for the settlement of GATT agreements. [24] Many people want to restrict free trade. But that would be a serious compromise. Recent studies indicate that there are additional benefits of the WTO, including lower export volatility. Christina Davis at Princeton shows that international institutions such as the WTO have helped reduce agricultural tariffs, which are notoriously economically inefficient and politically difficult to eliminate. 6) What are the WTO`s main challenges? Maintaining an „open“ global trading system has not been easy. Countries around the world imposed more than 2,500 trade restrictions after the onset of the global financial crisis in October 2008 – and three-quarters of these restrictions remained at the end of 2015. One of GATT`s most important achievements has been indiscriminate trade. Any GATT signatory should be treated like any other, known to be the nation`s most privileged principle and entered into the WTO.

The practical result was that, once a country had negotiated a tariff reduction with some other countries (usually its major trading partners), this reduction would automatically apply to all GATT signatories. There were leakage clauses allowing countries to negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. The fifth cycle was held again in Geneva and lasted from 1960 to 1962. The discussions were named after U.S. Treasury Secretary and former Undersecretary of State Douglas Dillon, who first proposed the talks. Twenty-six countries participated in the cycle. In addition to reducing tariffs by more than $4.9 billion, it has also led to discussions on the creation of the European Economic Community (EEC). The General Agreement on Tariffs and Trade is a port for a series of global trade negotiations that took place between 1947 and 1995 in a total of nine cycles. The GATT was first conceived after the Allied victory in World War II at the 1947 United Nations Conference on Trade and Employment, in which the International Trade Organization (ITO) was one of the ideas proposed. It was hoped that the ITO would be led alongside the World Bank and the International Monetary Fund (IMF).