The primary change from the General Agreement on Tariffs and Trade (GATT) to the World Trade Organization (WTO) focused on the ability of the WTO to
A) penalize the United States for any trade violation.
B) prohibit certain countries from seeking penalties against other countries.
C) allow states to challenge each other's laws at the WTO.
D) create an international trade police that was permitted to examine imported goods.

Question

Quizplus · Accepted Answer

The primary change from GATT to WTO was the establishment of a dispute settlement mechanism that allowed states to challenge each other's laws and practices at the WTO. This mechanism included a standing panel of experts to review disputes and issue binding decisions, effectively giving more power to the WTO than GATT in enforcing trade rules. The other options mentioned such as penalizing the US, prohibiting certain countries from seeking penalties against others, or creating an international trade police were not significant changes from GATT to WTO.

The Primary Change from the General Agreement on Tariffs and Trade