Question

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation:

1) DSB
2) GATT
3) FTAA
4) NAFTA
5) ASEAN

Answer 1

The WTO is the successor to GATT, which provided a forum for nations to negotiate trade tariffs and barriers after WWII. GATT transformed into WTO in 1995 to govern international trade more comprehensively.

Step-by-step explanation:

The World Trade Organization (WTO) is the successor of the General Agreement on Tariffs and Trade (GATT).

The WTO was established as a result of a long historical progression of efforts to create international trade frameworks post-World War II. The original intent was for an International Trade Organization to be created alongside the United Nations and other financial institutions; however, when plans for the ITO did not materialize, the priority shifted. Instead, the GATT became the central body facilitating global trade negotiations.

Conceived in the aftermath of the Great Depression and the Second World War, GATT provided a forum where countries worked towards reducing tariffs and other barriers to trade. Ultimately, in 1995, following the conclusion of the Uruguay Round of negotiations, GATT transformed into the WTO, expanding its scope and solidifying its role as the principal international organization governing global trade.