The Uruguay Round, which took place from 1986 to 1994, was a crucial moment in the international trading system. During this time, the General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO).
The GATT had been in place since 1947 and was designed to regulate international trade by reducing tariffs and other barriers to trade between countries. However, as the global economy evolved, it became clear that the GATT needed to be updated to reflect the changing needs of the international community.
The Uruguay Round was launched in 1986 with the goal of updating the GATT and establishing a new, stronger framework for the global trading system. Over the course of eight years, negotiators from 123 countries worked to hammer out a new agreement. The result was the creation of the World Trade Organization, which officially came into being on January 1, 1995.
The WTO is a global organization that serves as a forum for countries to negotiate trade agreements and settle disputes related to international trade. It is governed by a ministerial conference, which meets every two years to discuss trade issues and set the organization`s agenda. The WTO also has a dispute settlement mechanism, which allows countries to bring trade-related grievances to a neutral third party for resolution.
The Uruguay Round also resulted in a number of key agreements that have had a significant impact on global trade. These include agreements on agriculture, textiles and clothing, and intellectual property rights. The agreement on agriculture, for example, aimed to reduce subsidies and other forms of support for agricultural products, which had led to distortions in global trade. The agreement on intellectual property rights established new regulations for the protection of patents, trademarks, and copyrights.
Overall, the Uruguay Round was a pivotal moment in the history of global trade. By establishing the World Trade Organization and negotiating new trade agreements, the international community was able to create a stronger, more effective framework for regulating international trade. Today, the WTO remains an important institution that plays a crucial role in shaping the global economy.