Marrakesh Agreement

The Marrakesh Agreement, formalised through the Marrakesh Declaration, is the foundational treaty that established the World Trade Organization (WTO). Signed on 15 April 1994 in Marrakesh, Morocco, by 123 participating nations, it marked the conclusion of the eight-year Uruguay Round of multilateral trade negotiations. The Agreement came into force on 1 January 1995, transforming global trade governance by replacing the General Agreement on Tariffs and Trade (GATT) with a permanent, rules-based international organisation.

Background and Development

The Marrakesh Agreement emerged from the need to update and expand the post-Second World War trading system. GATT, established in 1947 as a provisional framework, had successfully reduced tariffs over several decades but lacked a comprehensive institutional structure. As global trade expanded, particularly in services, intellectual property, and agricultural products, its limitations became increasingly evident.
The Uruguay Round, launched in 1986, sought to address these shortcomings through the most ambitious and wide-ranging trade negotiations undertaken up to that time. Its objectives included reducing trade barriers, establishing uniform trade rules, and creating an authoritative mechanism for settling disputes. After nearly a decade of negotiations, the signing of the Marrakesh Agreement concluded this extensive process and provided the legal foundation for a reformed global trade order.

Structure and Key Agreements

The Marrakesh Agreement comprises a suite of binding accords that together form an integrated whole. Participation requires acceptance of the entire package, preventing selective adherence and ensuring uniform obligations among member states. Key components include:

• General Agreement on Tariffs and Trade (GATT) 1994: Consolidates and updates earlier GATT provisions, maintaining the commitment to reducing tariffs and trade barriers in goods.
• General Agreement on Trade in Services (GATS): Establishes the first multilateral framework governing the trade of services, including financial, educational, and telecommunications services.
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Introduces minimum standards for the protection and enforcement of intellectual property rights, covering patents, trademarks, and copyrights.
• Agreement on Technical Barriers to Trade (TBT): Sets rules for technical regulations, standards, and conformity assessments to ensure they do not create unnecessary obstacles to trade.
• Agreement on the Application of Sanitary and Phytosanitary Measures (SPS): Regulates food safety and animal and plant health measures, requiring that such measures be based on scientific principles.
• Dispute Settlement Understanding (DSU): Establishes a more efficient, legally binding dispute resolution system, providing clear procedures and stricter timelines for managing trade disagreements between member states.

Together, these agreements form the legal and institutional architecture of the WTO, ensuring predictability, transparency, and enforceability in international trade relations.

Establishment of the World Trade Organization

With the Marrakesh Agreement’s entry into force, the WTO replaced GATT as the principal body overseeing global trade. Unlike GATT, which functioned primarily as a contract among states, the WTO was established as a permanent organisation with a formal institutional structure. Its responsibilities include administering trade agreements, monitoring national trade policies, negotiating new trade rules, and resolving trade disputes.
The WTO also expanded the scope of trade governance. Whereas GATT primarily addressed trade in goods, the WTO framework covers services, intellectual property, and investment-related issues, reflecting the evolving nature of the global economy.

Implications and Significance

The Marrakesh Agreement represents one of the most significant developments in modern economic diplomacy. It consolidated a fragmented system of global trade rules into a unified structure and introduced mechanisms to ensure compliance. Key implications include:

• Enhanced legal certainty: Binding dispute resolution strengthened the enforceability of international trade rules.
• Broader coverage: The inclusion of services and intellectual property reflected global economic diversification.
• Greater institutional stability: The WTO’s creation provided a dedicated forum for ongoing negotiation and policy coordination.
• Comprehensive membership obligations: The indivisibility of the Agreement ensured that all members adhered to the same set of rules, fostering fairness and consistency.

The Agreement has shaped contemporary trade policy by promoting liberalisation while balancing regulatory and developmental concerns among diverse member states.

Related Developments

Marrakesh has remained a symbolic venue for significant international negotiations. In 2018, the city co-hosted negotiations for the UN Global Compact for Migration, a separate treaty addressing international migration governance. Although unrelated to trade, its adoption underscored Marrakesh’s continuing role in global multilateral diplomacy.
The Marrakesh Agreement continues to underpin the functioning of the WTO and remains central to the ongoing evolution of the international trading system. Its comprehensive architecture and binding commitments have made it a cornerstone of contemporary economic globalisation, shaping trade policy and economic relations across the world.