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In January l995，the world witnessed the emergence of a new international economic order with the launching of the World Trade Organization．The WT0，which succeeds the GATF，is expected to strengthen the world trading system and to be more effective than the GATr in governing international trade in goods and services in many aspects．
First，trade liberalization all over the world is expected to increase via the dramatic reductions in trade barriers to which the members of the WTO are commitred．Under the WT0，members are required to reduce their tariff and non-tariffs on manufacturing goods．In addition，protecting domestic agricultural sectors from foreign competition will become
awfully difficult in the new WTO system．
Second，Iules and regulations goveming international trade will be more strongly enforced．Under the old systern of the GATT，there were many cases where trade measures，such as anti—dumping and countervailing duties，
were intentionally used solely for protectionist reasons．The WT0’S strengthened rules and regulations will signifi cantly reduce the abusing of such trade measures by its member countries．The WTO is also equipped with all improved dispute settlement mechanism．Accordingly，we expect to see a more effective resolution of trade disputes among the member countries in this new trade environment．
Third．new multilateral rules have been established to cover areas which the GATF did not address.such as in．
temational trade in services and the protection of intellectual property rights．There still remain a number of problems that need to be resolved before international trade in services call be completely hberalized，and newly-developed ide．
as or technologies ale fairly compensated．However，just the establishment of multilateral rules in these new areas is a distinguished contribution to the progress toward a global free trade system．
Along witll the launching of the WT0．this new era in world trade is characterized by a change in the structure of the world economy．Today，a world-wide market for goods and services is rapidly replacing a world economy composed of relatively isolated national markets．Domestic financial markets have been integrated into a truly global system，and the multinational corporation is becoming a principal mechanism for allocating investment capital and determining the location of production sites throughout much of the world．
Between WTO and GATT________． A．WTO and GATr govern the intemational trade at the same time
B．WTO is the pre—existence of GATT
C．GATT is the pre—existence of WTO
D．GATr is more effective than WTO in some aspects
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