The Agreement of World Trade Organization (WTO) is a global agreement that was established on January 1, 1995, aimed at ensuring that international trade is conducted on a level playing field. WTO is an international organization that sets rules for global trade and resolves disputes between member nations.
The primary objective of the WTO is to ensure that trade flows as smoothly, predictably, and freely as possible. Its main purpose is to help producers of goods and services, exporters, and importers conduct their business in a fair and transparent manner. The WTO accomplishes this by promoting a rules-based trading system that ensures that all member countries have equal access to markets, regardless of their economic development status.
One of the key aspects of the WTO Agreement is the Most-Favored-Nation (MFN) principle. This principle means that each member of the WTO must be given the same treatment as another member nation, with regard to trade. For example, if a country extends a certain tariff rate to a trading partner, it must extend the same tariff rate to all other countries that are members of the WTO.
Another important aspect of the WTO Agreement is the National Treatment principle. This principle requires that foreign goods and services are treated the same as domestic goods and services in trading partner countries. This principle ensures that foreign companies are not discriminated against, and that they are able to operate in the same way as domestic companies.
The WTO Agreement also addresses issues such as intellectual property rights, investment, and trade in services. It provides a way for members to negotiate new trade agreements, resolve disputes, and monitor trade policies of member countries to ensure that they conform to global trade rules.
In conclusion, the Agreement of World Trade Organization is very important in ensuring that international trade is conducted in a fair and transparent manner. It sets rules that ensure that member countries have equal access to markets, regardless of their economic development status, and that foreign goods and services are treated the same as domestic goods and services in trading partner countries. The WTO Agreement has helped to promote global economic growth and development, and has been instrumental in resolving trade disputes between member nations.