Since 1995, GATT has been replaced by the World Trade Organization (WTO), a multilateral body at the same level as the International Monetary Fund and the World Bank. It is working to deepen the process of trade liberalization between nations so that it can contribute more broadly to boosting global economic growth. Its objectives include liberalizing agricultural trade, abolishing protectionism measures other than tariffs and quotas, and strengthening mechanisms for resolving trade disputes between nations. It is also working to broaden its scope to trade services, capital flows and technological transport, as well as environmental measures related to global trade. It is hoped that this new entity will create a stable legal basis for trade relations between all countries and revive global economic growth, taking into account new trends in open trade, globalization and competitiveness between nations. The fourth round returned to Geneva in 1955 and lasted until May 1956. 26 countries participated in the cycle. $2.5 billion in tariffs have been eliminated or reduced. The summit almost resulted in a third organization.
This should be the very ambitious International Trade Organization (ITO). The 50 countries that started negotiations wanted an agency within the United Nations to create rules, not only for trade, but also for jobs, agreements on raw materials, trade practices, foreign direct investment and services. The ITO charter was adopted in March 1948, but the U.S. Congress and a few other countries refused to ratify it. In 1950, the Truman administration declared defeat and completed the ITO. One of GATT`s most important achievements has been indiscriminate trade. Any GATT signatory should be treated like any other, known to be the nation`s most privileged principle and entered into the WTO. The practical result was that, once a country had negotiated a tariff reduction with some other countries (usually its major trading partners), this reduction would automatically apply to all GATT signatories. There were leakage clauses allowing countries to negotiate exemptions if their domestic producers were particularly harmed by tariff reductions. Japan`s strong economic growth played an important role in its later role as an exporter, but the kennedy Round`s centre of gravity has always been the relationship between the United States and the EEC.
In fact, there was an influential American view that saw what became the Kennedy Round as the beginning of a transatlantic partnership that could ultimately lead to a transatlantic economic community. At the 1994 meeting in Bogor, Indonesia, APEC leaders adopted Bogor`s goals of free and open trade and investment in Asia-Pacific by 2010, for industrialized countries and by 2020 for developing countries. In 1995, APEC established a business council, called the APEC Business Advisory Council (ABAC), made up of three leaders from each member economy.