Final answer:
The statement is false; while the GATT panels were created to resolve trade disputes, they did not have the power to enforce their decisions. The WTO, which replaced GATT, has a stronger dispute settlement system with enforcement capabilities.
Step-by-step explanation:
False. The General Agreement on Tariffs and Trade (GATT) panels were indeed formed to resolve trade disputes; however, they did not have enforcement powers. The GATT was instrumental in the liberalization of international trade from its inception in 1947 until it was replaced by the World Trade Organization (WTO) in 1995. The GATT focused on the reduction of tariffs and non-tariff barriers and fostered rising volumes of international trade. Yet, while the GATT established rules and a system for arbitrating disputes, it was not an entity with the power to actually enforce its decisions.
The GATT's institutional structure and its dispute settlement system became a subject of concern due to its relatively weak implementation mechanisms. Nations sought to strengthen these mechanisms by creating the WTO, which replaced the GATT in 1995. Unlike the GATT, the WTO has a more structured process for settling disputes and the ability to authorize trade sanctions for non-compliance, providing stronger enforcement capabilities.