Question

Unlike the GATT, the WTO has enforcement power through its Dispute Settlement Panel, which is empowered to interpret WTO agreements and authorize sanctions on member-states that violate trade rules.

A) True
B) False

Answer 1

The answer is True

Step-by-step explanation:

The General Agreement on Tariffs and Trade (GATT) commenced in 1948, it is a legal agreement between many countries for the purpose of promoting international trade by removing or reducing trade barriers. It was however replaced by the World Trade Organisation (WTO) which officially started in 1995. One of the main activities of the WTO was to regulate international trade. The WTO is also involved in settling of trade disputes between countries or member government. It has the Dispute Settlement System (DSS) which contributes to ensuring stability of the global economy. The WTO has 164 member states. Unlike the GATT, the WTO dispute settlement system is faster, more assured, less susceptible to blockages and more automatic.