Final answer:
The statement is false; GATT panels focused on reducing trade barriers but had weaknesses in enforcement and dispute resolution, leading to the establishment of the WTO with stronger mechanisms for these purposes.
Step-by-step explanation:
The statement that GATT panels were formed to resolve bilateral trade disputes and have both advisory and enforcement powers is B) False. The General Agreement on Tariffs and Trade (GATT) was indeed an instrument for trade liberalization and involved negotiations to reduce trade barriers, but the actual enforcement of agreements as well as dispute resolution were seen as weak points of the GATT system. It was this weakness, among other issues, that led to the creation of the World Trade Organization (WTO) in 1995, which has a more structured process for dispute settlement and the enforcement of trade agreements.