Question

Which of the following was formerly known as the General Agreement for Tariffs and Trade?

• A. World Transportation Organization
• B. World Tariffs Organization
• C. World Trade Organization
• D. World Taxation Organization

Hint:

Remember the evolution: GATT was the agreement, and WTO is the organization that was created to replace and expand upon it. Think of GATT as the "rules" and WTO as the "referee" that enforces them.

Answer 1

The Correct Option is C

Step 1: Concept Identification:
Identify the modern successor to the General Agreement on Tariffs and Trade (GATT). The text identifies the WTO as the basis of current global economic organization.

Step 3: Elaboration:
The General Agreement on Tariffs and Trade (GATT), established in 1947, aimed to foster international trade by reducing trade barriers like tariffs and quotas. Following extensive negotiations, the Uruguay Round (1986-1994) resulted in the formation of the World Trade Organization (WTO) in 1995. The WTO superseded GATT as the principal international entity governing trade regulations among countries.

Step 4: Conclusion:
The World Trade Organization (WTO) evolved from the framework previously known as the General Agreement for Tariffs and Trade (GATT).