The World Trade Organization (WTO) stands as a pillar of global trade governance. It  facilitating the smooth flow of goods and services across borders. while promoting a rules-based international trading system. Since its inception in 1995, the WTO has played a central role in shaping the dynamics of global commerce. It was fostering cooperation among nations and resolving trade disputes. From its humble beginnings to its current challenges and opportunities. The WTO’s journey reflects the complexities and interdependencies of the modern global economy.

Founding Principles: Building Blocks of International Trade (1995-2000)

The roots of the WTO. It can be traced back to the General Agreement on Tariffs and Trade (GATT).It  was established in the aftermath of World War II to promote free trade and economic cooperation. With the Uruguay Round of trade negotiations culminating in the creation of the WTO in 1995. The organization inherited the principles of non-discrimination, transparency and dispute resolution that formed the cornerstone of the GATT regime. The WTO’s founding members. Representing a diverse array of economies. They are pledged to uphold these principles and work towards a more open and inclusive global trading system.

The GATT regime or General Agreement on Tariffs and Trade. which is a foundational framework within the World Trade Organization (WTO). It was established in 1947, with the primary aim of promoting international trade by reducing barriers such as tariffs and quotas. The GATT operated as an international treaty among member countries. It providing a set of rules and principles governing trade between nations.

Here are some key aspects of the GATT regime within the WTO:

1. Tariff Reduction: One of the primary objectives of the GATT was to reduce tariffs on goods traded between member countries. This was achieved through a series of negotiations known as “rounds.” Notable rounds include the Kennedy Round (1964-1967), the Uruguay Round (1986-1994) and the Doha Development Agenda (2001-present).

2. Non-Discrimination: The principle of non-discrimination is a cornerstone of the GATT regime. It’s embodied in two main principles:

     – Most Favored Nation (MFN): Under this principle, countries are required to treat all other member countries equally, without discrimination. Any favorable treatment given to one member must be extended to all members.

     – National Treatment: This principle requires that imported and domestically produced. Goods be treated equally once they enter a country’s market. This ensures that foreign products are not subject to discriminatory measures        compared to domestic goods.

3.Trade Liberalization: GATT aimed to liberalize trade by gradually reducing trade barriers. Which including tariffs, quotas and other restrictions on imports and exports.

4. Dispute Settlement: The GATT regime provided a mechanism for resolving disputes between member countries. Initially, this process involved consultations and negotiations between the parties involved. If a resolution couldn’t be reached. The issue could be escalated to a panel of experts. who would deliver a ruling. The Uruguay Round negotiations led to the establishment of a more formalized dispute settlement mechanism within the WTO.

5. Principles of Trade Conduct: GATT laid out various principles governing trade practices. which are  including transparency, predictability and reciprocity. These principles aimed to create a more stable and predictable trading environment.

6. Special and Differential Treatment: Recognizing the differing levels of development among member countries. GATT included provisions allowing for special and differential treatment for developing countries. This often involved granting them more lenient terms in trade negotiations. To facilitate their integration into the global trading system.