Explain the co-relation between the following.
GATT and WTO
The General Agreement on Tariffs and Trade (GATT) was signed on 30th October 1947 by 23 countries with the purpose to promote international trade by reducing eliminating trade barriers such as tariffs or quotas. It came into force on 1st January 1948. It aimed to boost economic recovery after World War II through reconstructing and liberalizing global trade. It introduced the most favoured nation principle. GATT was refined over 8 rounds of negotiations, leading to the creation of the World Trade Organization ( WTO) which replaced GATT on 1 January 1995. WTO covers services and intellectual property also. It is the international agency overseeing the rules of international trade i.e., it promotes free trade agreements, organizes trade negotiations, settles trade disputes, etc. Its headquarters are in Geneva. It has 123 member States. The WTO dispute settlement system is faster, more automatic than the GATT system and its rulings cannot be blocked.