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. The GATT has introduced the most applied nation principle in customs agreements between members. The SPS agreement has changed the way trade decisions are made with respect to agricultural products. Its main intention is to facilitate trade and avoid the use of sanitary and plant health measures as unjustified barriers to trade. The agreement stipulates that all measures must be scientifically sound and should not be unnecessarily restrictive, while recognizing the right of countries to the protection of human, animal or plant life or health. In addition to facilitating applied tariff reductions, GATT`s contribution to trade liberalization includes “the commitment of extended-term tariff reductions (which became more sustainable in 1955), the definition of universality of non-discrimination through the treatment of the most favoured nation (MFN) and the status of domestic treatment, ensuring greater transparency in trade policies and creating a forum for negotiations and the peaceful settlement of bilateral disputes. All of these have helped to streamline trade policy and reduce trade barriers and political uncertainty.

[4] The third element of the GATT structure, which was later incorporated into the WTO, is an institutional presence maintained by the work of its secretariat. It is important that the Secretariat largely monitors the implementation of dispute resolution bodies that, in fact, define the mechanism for enforcing the rules of the trading system within the WTO system. These dispute resolution bodies have accelerated considerably in recent years and have culminated in decisions in a number of key areas, including banana trade (see THE WTO Director-General`s statement to the WTO General Council, 8 March 1999). Unlike the ITO charter, the GATT did not need congressional approval. Technically, the GATT was a 1934 agreement, in accordance with the provisions of the U.S. Reciprocal Trade Act. The Uruguay Round Agricultural Agreement remains the most important agreement in the history of trade negotiations for the liberalisation of agricultural trade. The aim of the agreement was to improve market access for agricultural products, reduce national aid to agriculture in the form of price-distorting subsidies and quotas, eliminate agricultural export subsidies over time and harmonize health and plant health measures among Member States as much as possible. While THE GATT was a set of rules agreed upon by nations, the WTO is an intergovernmental organization with its own headquarters and staff, whose scope covers both traded goods and trade in the service sector and intellectual property rights. Although used for multilateral agreements, multilateral agreements have led to selective exchanges and fragmentation among members in several rounds of negotiations (particularly the Tokyo Round).