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: Understanding the Concept:
The question asks to identify the modern organization that succeeded the General Agreement on Tariffs and Trade (GATT). The passage mentions the WTO as a basis of the world's economic organization in modern times.

Step 3: Detailed Explanation:
The General Agreement on Tariffs and Trade (GATT) was a legal agreement signed in 1947 to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas. After several rounds of negotiations over the decades, the Uruguay Round (1986-1994) led to the creation of the World Trade Organization (WTO) in 1995. The WTO replaced GATT as the primary international body dealing with the rules of trade between nations.

Step 4: Final Answer:
The World Trade Organization (WTO) was formerly the framework known as the General Agreement for Tariffs and Trade (GATT).