The World Trade Organization

WTO decision-making

By consensus; a decision passes as long as no member present objects.

Non-discrimination/Most Favored Nation (MFN)

A lower tariff given to one member must be given to all WTO members.

Non-discrimination (National Treatment)

Once a foreign good clears customs, it must be treated the same as local goods.

Reciprocity

When a country lowers its tariffs, it expects partners to lower theirs in return.

Binding & enforceable commitments

Agreed tariff rates are bound in a legal schedule as ceilings; raising them risks penalties.

Transparency

Members must publish trade laws, report policy changes, and maintain a dispute-review system.

Safety valves

Members may temporarily impose barriers under specific conditions like health, safety, or environment.

When was WTO established

January 1, 1995.

GATT (General Agreement on Tariffs and Trade)

Established 1947 to rebuild trade after WWII.

Uruguay Round

Trade negotiations (1986-1994) establishing the WTO, signed in Marrakesh on April 15, 1994.

Encouraging development

WTO gives developing economies longer transition periods, technical assistance, and faster market access.