In 1994, the General Agreement on Tariffs and Trade (GATT) was renamed as the World Trade Organization (WTO), signifying a new era in global trade. GATT was established in 1947 as an international agreement aimed at promoting free trade and reducing tariffs among member countries. Over the years, GATT underwent several rounds of negotiations and revisions, with the ultimate goal of creating a fair and open system of global trade.

In 1994, the Uruguay Round of negotiations concluded with the creation of the WTO, replacing GATT as the primary forum for international trade negotiations and dispute resolution. The WTO is a specialized agency of the United Nations, headquartered in Geneva, Switzerland. It operates on the basis of a set of agreements negotiated by its member countries, covering a wide range of trade-related issues, including tariffs, subsidies, intellectual property, and trade in services.

The creation of the WTO represented a major step forward in global economic governance, as it provided a more formal and transparent framework for trade negotiations and dispute resolution. The organization has played a critical role in promoting global economic growth and development, facilitating trade liberalization and market access, and promoting fair and equitable trading relationships among its member countries.

One of the key features of the WTO is its dispute settlement mechanism, which provides a formal process for resolving disputes among member countries. This process includes both consultation and mediation, and the WTO has the authority to make binding decisions on disputes that cannot be resolved through negotiation.

In addition to its role in promoting free trade and resolving disputes, the WTO also plays an important role in providing technical assistance and capacity building to developing countries, helping them to participate more fully in the global trading system.

Despite its many successes, the WTO has faced challenges in recent years, with some critics arguing that it has not done enough to ensure that the benefits of global trade are shared equitably among all countries and communities. Nevertheless, the organization remains a critical institution for promoting free trade and economic growth, and it will likely continue to play a key role in shaping the future of global economic governance.