The World Trade Organization (WTO) was established to replace which agreement?

The World Trade Organization (WTO) was established to replace which agreement?

• A. IMF
• B. GATT
• C. UNCTAD
• D. World Bank

Answer: (B)

The main idea here is identifying which agreement the World Trade Organization was created to replace. The WTO took over the multilateral trade rules from the General Agreement on Tariffs and Trade, or GATT, after the Uruguay Round, with the Marrakesh Agreement formalizing the transition in the mid-1990s. GATT began in 1947 as a framework to reduce tariffs and regulate trade in goods. The WTO expanded on that by covering not just goods but also services and intellectual property, building a more comprehensive system. The other options are different international institutions with distinct roles: the IMF handles monetary cooperation and financial stability, UNCTAD focuses on trade and development, and the World Bank provides development financing. Thus, the agreement the WTO replaced is GATT.

The main idea here is identifying which agreement the World Trade Organization was created to replace. The WTO took over the multilateral trade rules from the General Agreement on Tariffs and Trade, or GATT, after the Uruguay Round, with the Marrakesh Agreement formalizing the transition in the mid-1990s. GATT began in 1947 as a framework to reduce tariffs and regulate trade in goods. The WTO expanded on that by covering not just goods but also services and intellectual property, building a more comprehensive system. The other options are different international institutions with distinct roles: the IMF handles monetary cooperation and financial stability, UNCTAD focuses on trade and development, and the World Bank provides development financing. Thus, the agreement the WTO replaced is GATT.