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Difference Between WTO and NAFTA

naftaWTO vs NAFTA

North American Free Trade Agreement or NAFTA and World Trade Organization or WTO are trade related entities and are considered to be the most powerful in trade matters.

While WTO pertains to the whole globe, NAFTA is just related to North American region. NAFTA is a treaty that has been signed among the US, Canada and Mexico. This trilateral treaty came into force on January one, 1994 and it superseded the Canada United States Free Trade Agreement.

The WTO is an international organisation, which aims at supervising and liberalising capital trade in the international level. The World Trade Organisation was formed on January one, 1995. Formed under the Marrakesh Agreement, the WTO replaced General Agreements on Tariffs and Trade (GATT).

NAFTA deals with resolving trade disputes and also negotiating new areas between industries and governments in a timely and impartial manner. Its main goal is to eliminate barriers between the three countries in trade and investment. On the other hand, the WTO has a wider role. It mainly deals with trade among the member countries. Apart from providing a framework for negotiating and formalising agreements, the WTO is also a place where the disputes between countries are settled. It also helps the developing or under developed nations in trade matters.

The World Trade Organisation is governed by a ministerial conference, which meets every two years. The general council is responsible for implementing the Ministerial conference’s decisions. This general council deals with the day-to-day administration. WTO is headed by a director general appointed by the ministerial conference. The World Trade Organisation is headquartered at Geneva in Switzerland.

NAFTA is governed by the Secretariats, located at the three countries. The Canadian secretariat is located in Ottawa, Mexican Secretariat in Mexico City and United States Secretariat in Washington D C. A secretary who is appointed by the respective governments heads the secretariats.

Summary
1. While WTO pertains to the whole globe, NAFTA is just related to North American region.
2. NAFTA is a treaty that has been signed among the US, Canada and Mexico. The WTO is an international organisation, which aims at supervising and liberalising capital trade in the international level.
3. NAFTA came into force on January one, 1994. The World Trade Organisation was formed on January one, 1995.
4. The World Trade Organisation is governed by a ministerial conference, which meets every two years. NAFTA is governed by the Secretariats, located at the three countries.


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