There are a number of ways of looking at the World Trade Organization:
A place to settle trade disputes.
A forum for governments to negotiate trade agreements.
An organization for trade opening.
It operates a system of trade rules.
Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other.
Article II: Scope of the WTO
“The WTO shall provide the common institutional framework for the conduct of trade relations among its Members in matters related to the agreements and associated legal instruments…”
Rules of the WTO
appear to be complex, but are based on four basic principles:
- Protecting domestic industry by tariffs only
- Binding/Reduction of tariffs
- Most favoured nation (MFN) principle
- National treatment, for imported and domestic products