Why does the World Trade Organization cover services and intellectual property as well as goods?

The World Trade Organization (WTO) expanded its scope beyond the General Agreement on Tariffs and Trade (GATT)—which focused almost exclusively on merchandise—to encompass services and intellectual property because the global economy evolved, making traditional tariffs less significant compared to other impediments to international transactions.12

During the Uruguay Round (1986–94), it became clear that a comprehensive framework was necessary to supervise and liberalize trade in these increasingly vital areas. The inclusion of these sectors was formalized through two core agreements:32

• General Agreement on Trade in Services (GATS): Designed to supervise and liberalize trade in services.34
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Established to improve the protection of intellectual property across borders by requiring members to enforce minimum standards for copyrights, patents, and trademarks.53

By covering these areas, the WTO aims to bring greater certainty and predictability to international markets, thereby enhancing economic welfare and reducing political tensions.1