Principles of Wto

PRINCIPLES OF WTO
The basic principles of the WTO (according to the WTO):
• Trade Without Discrimination
1. Most-favoured-nation (MFN): treating other people equally

Under the WTO agreements, countries cannot normally discriminate
between their trading partners. Grant someone a special favour (such as
a lower customs duty rate for one of their products) and you have to do
the same for all other WTO members.
2. National treatment: Treating foreigners and locals equally
Imported and locally-produced goods should be treated equally — at
least after the foreign goods have entered the market. The same should
apply to foreign and domestic services, and to foreign and local
trademarks, copyrights and patents.
 Freer trade: gradually, through negotiation

Lowering trade barriers is one of the most obvious means of
encouraging trade. The barriers concerned include customs duties (or
tariffs) and measures such as import bans or quotas that restrict
quantities selectively.
• Predictability: through binding and transparency

Sometimes, promising not to raise a trade barrier can be as important as
lowering one, because the promise gives businesses a clearer view of
their future opportunities. With stability and predictability, investment
is encouraged, jobs are created and consumers can fully enjoy the
benefits of competition — choice and lower prices. The multilateral
trading system is an attempt by governments to make the business
environment stable and predictable.
 Promoting fair competition

The WTO is sometimes described as a “free trade” institution, but that is
not entirely accurate. The system does allow tariffs and, in limited
circumstances, other forms of protection. More accurately, it is a system
of rules dedicated to open, fair and undistorted competition.
• Encouraging development and economic reforms
The WTO system contributes to development. On the other hand,
developing countries need flexibility in the time they take to implement
the system’s agreements. And the agreements themselves inherit the
earlier provisions of GATT that allow for special assistance and trade
concessions for developing countries.
STRUCTURE OF WTO
Ministerial
Conference
Dispute General Trade Policy

Settlement Council Review Body
The Intellectual
Services
Committee on Goods Council Property
Council
T&D and T&E Council
ROLE OF WTO
• The main goal of WTO is to help the trading industry to become
smooth, fair, free and predictable. It was organized to become the
administrator of multilateral trade and business agreements between
its member nations. It supports all occurring negotiations for latest
agreements for trade. WTO also tries to resolve trade disputes between
member nations.
• Multi-lateral agreements are always made between several countries
in the past. Because of this, such agreements become very difficult to
negotiate but are so powerful and influential once all the parties agree
and sign the multi-lateral agreement. WTO acts as the administrator. If
there are unfair trade practices or dumping and there is complain filed,
the staff of WTO are expected to investigate and check if there are
violations based on the multi-lateral agreements.
TRIMs, AND TRIPS OF WTO
1) Agreement on Trade-Related Investment Measures (TRIMs)
• TRIMs refers to certain conditions or restrictions imposed by a

governments in respect of foreign investment in the country
• The agreement on TRIMs provides that no contracting party shall
apply any TRIM which is inconsistent with the WTO Articles.
2) Agreement on Trade-Related Aspects of Intellectual Property Rights

(TRIPS)
• The Agreement on Trade Related Aspects of Intellectual Property

Rights (TRIPS) is an international agreement administered by the
World Trade Organization (WTO) that sets down minimum standards
for many forms of intellectual property (IP) regulation as applied to
nationals of other WTO Members.
• It was negotiated at the end of the Uruguay Round of the General
Agreement on Tariffs and Trade (GATT) in 1994.
• TRIPS contains requirements that nations' laws must meet for
copyright rights, including the rights of performers, producers of sound
recordings and broadcasting organizations; geographical indications,
including appellations of origin; industrial designs; integrated circuit
layout-designs; patents; monopolies for the developers of new plant
varieties; trademarks; trade dress; and undisclosed or confidential
information.
• specifies enforcement procedures, remedies, and dispute resolution
procedures.
THE RELEVANCE OF WTO
• The system helps promote peace.

• A system based on rules rather than power makes life easier for all.
• The system allows disputes to be handled constructively.
• Freer trade cuts the cost of living.
• It gives consumers more choice and a broader range of qualities to
choose from.
• Trade raises incomes.
• Trade stimulates economic growth and that can be good news for
employment
• The basic principles make the system economically more efficient, and
they cut costs.

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PRINCIPLES OF WTO

The basic principles of the WTO (according to the WTO):

• Trade Without Discrimination

1. Most-favoured-nation (MFN): treating other people equally

 Freer trade: gradually, through negotiation

• Predictability: through binding and transparency

 Promoting fair competition

Dispute General Trade Policy

TRIMs, AND TRIPS OF WTO

1) Agreement on Trade-Related Investment Measures (TRIMs)

• TRIMs refers to certain conditions or restrictions imposed by a

2) Agreement on Trade-Related Aspects of Intellectual Property Rights

• The Agreement on Trade Related Aspects of Intellectual Property

• The system helps promote peace.

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