Question

The General Agreement on Tariffs and Trade (GATT) was transformed into the World Trade Organization in ______.

• A. 1995
• B. 1991
• C. 2005
• D. 1976

Answer 1

The Correct Option is A

The transformation of the General Agreement on Tariffs and Trade (GATT) into the World Trade Organization (WTO) occurred in 1995. This significant event marked the culmination of the Uruguay Round of negotiations, which lasted from 1986 to 1994. Let's explore the process: 

• Initially established in 1947, GATT was a multilateral agreement regulating international trade.
• The need for a stronger institution to oversee global trade policy became evident, leading to the negotiation rounds within GATT, particularly the Uruguay Round.
• The Uruguay Round addressed a broad range of issues beyond tariffs, including agriculture, services, and intellectual property.
• The successful conclusion of these negotiations resulted in the Marrakesh Agreement signed on April 15, 1994, which established the WTO.
• On January 1, 1995, the World Trade Organization was officially formed, succeeding GATT as the primary international entity governing trade rules.

Hence, the correct answer is 1995.

Answer 2

The General Agreement on Tariffs and Trade (GATT), which was established in 1947 to regulate international trade, was transformed into the World Trade Organization (WTO) in 1995. The transformation marked a significant expansion of the international trading system, with the WTO taking on a broader role in regulating not only trade in goods but also services, intellectual property, and dispute resolution among member countries.

• 1991 (B): This is not the correct year for the formation of the WTO; GATT was still in effect until 1995.
• 2005 (C): This is well after the formation of the WTO, so it is not the correct year.
• 1976 (D): This year does not correspond to any significant change regarding GATT or the formation of the WTO.

Thus, the correct year is 1995.