At the same time, in December 1945 a group of countries (initially 15 and later 23) began talks on the GATT with a view to reducing custom tariffs. The GATT was signed in 1948 and, as the negotiation process to create the ITO ultimately failed, became the only multilateral instrument to govern world trade until the WTO was created in 1995. 4.
Under the GATT, disputes were initially settled by a ruling by the chair. A working party was later established to consider the matter and advise the contracting parties. Finally, a more formal system involving a three-person “panel” was established. This concept was subsequently incorporated into the WTO. For more details, see McRae, D.M.