Wto Trading Principles Essay
- Administer trade agreement (GATTs, GATs and TRIPs)
- Dispute resolution
- Monitor national trade policies of members’ country
For WTO to achieve the above mandate efficiently and effectively, the WTO uses the trading principles below (Justin, n.d)
- Trade without discrimination
- Freer trade: gradually, through negotiation
- Predictability: through binding and transparency
- Promoting fair competition
- Encouraging development and economic reform
The purpose of this assignment is to write a brief note on these identified principles.
Trade without discrimination
Trading without discrimination has the following …show more content…
Investment can be encouraged by creating an environment that supports prediction and stability. In this way, an organization can plan.
This principle helps in creating this stability as country bounds their tariff on reduction and lists the tariffs on schedule of commitment. If there is a change in the tariff after bounding then compensation will be paid to the trading partner and the process is complex this is done to discourage the change after binding.
Trading countries ensure they are transparent by publishing or disclosing their policies.
Promoting fair competition
There exist rules that promote and encourage fair competition between trading countries. Unfair trading like dumping and export subsidies are greatly discouraged.
Encouraging development and economic reform
This principle helps in understanding the need of the developing nation by granting flexibility into how they implement the agreement and also consideration are made with the knowledge that about ¾ of the membership of WTO are developing countries.
Several supports are rendered for developing countries e.g. Technical assistance, non-reciprocity, and special and differential treatment (S&D)
This contribution to economic reform is evident when the developing countries are now obliging to take on some of the requirement for developed nation and also The current Doha