Step 1: Understanding the Concept:
International trade was governed by the General Agreement on Tariffs and Trade (GATT) after World War II to reduce trade barriers.
The World Trade Organization (WTO) was created to establish a more permanent and legally binding institutional framework for global trade.
Step 3: Detailed Explanation:
GATT was established in 1948 and functioned for several decades through various rounds of negotiations.
The final round, known as the Uruguay Round (1986–1994), led to the Marrakesh Agreement.
As per this agreement, the WTO officially replaced GATT on 1 January 1995.
While GATT mainly focused on trade in goods, the WTO expanded its scope to include services and intellectual property rights.
Step 4: Final Answer:
GATT was replaced by the WTO in the year 1995.