increases. The GATT has since been replaced by the World Trade
Organization (WTO), which continues the work of the GATT.
Through various “rounds” of negotiations under the auspices of the GATT
and the WTO, the average level of tariffs has declined considerably since
- In addition to the tariff reductions, an important success of the
WTO negotiations has been the creation of a formal dispute-settlement
mechanism. This mechanism allows countries to take cases of alleged
trade violations—such as illegal subsidies or tariffs—to the WTO for a
formal ruling, and obliges member countries to follow the ruling. A
notable failure of the WTO process has been the inability to significantly
liberalize trade in agricultural products, an industry that still receives
massive subsidies and other government support in many developed and
developing countries.
As of 2016, there are 164 countries that are members of the WTO; 23
others are “observers” to the process.