Multilateral Trading System

Abstract Given the crucial role of the erstwhile GATT, and now the WTO, in formulating rules for international trade, this chapter discusses how the GATT came into existence, what were its main features, how did the transition from the GATT to the WTO come about, what influences have shaped the multilateral trading system under the GATT/WTO, and how have the issues of interest and concern to the developing countries been addressed by the GATT/WTO. It traces the evolution of GATT/WTO against the backdrop of changing economic interests of the developed countries. In addition, this chapter also briefly examines the implications of WTO rules on domestic policymaking in developing countries. Overall, this chapter will help the readers understand the fundamental underpinnings of the multilateral trading system, its relevance for economic prosperity of countries and the daunting challenges that various sources of influence on the system pose for most developing countries.