Why was GATT reformed?

The reform of GATT (General Agreement on Tariffs and Trade) was primarily aimed at addressing the increasing complexity and diversity of international trade, which extended beyond the mere exchange of goods to encompass services and intellectual property. By including trade in services and intellectual property, the reformed version of GATT was able to better reflect the realities of the global economy, particularly as economies became more service-oriented and as the significance of intellectual property rights grew in facilitating trade and protecting innovation.

This expansion in scope allowed for more comprehensive trade negotiations and agreements that could cover a wider range of economic activities, fostering a more integrated approach to international trade. Prior to these reforms, GATT had primarily focused on goods and tariffs, which limited its effectiveness in regulating emerging sectors of the global market. Therefore, this reform was essential to modernize the framework of international trade agreements and ensure they were relevant and effective in addressing contemporary trade issues.