The system also attempts to improve predictability and stability in other ways. One possibility is to discourage the application of quotas, and other measures to set the quantities imported used to manage quotas can lead to more bureaucracy and accusations of unfair gambling. Another is to make countries` trade rules as clear and public (transparent) as possible. Many WTO agreements require governments to publicly disclose their policies and practices in the country or by notifying the WTO. Regular monitoring of national trade policies through the Trade Policy Review Mechanism is another way to promote transparency at the national and multilateral levels. 2. National treatment: Treat foreigners and locals equally Imported and locally produced goods should be treated equally, at least after foreign products enter the market. The same should apply to foreign and domestic services, as well as to foreign and local trademarks, copyrights and patents. This principle of national treatment (which accords others the same treatment as their own nationals) is also found in the three main WTO agreements (Article 3 of the GATT, Article 17 of the GATS and Article 3 of the TRIPS Agreement), although this principle is again applied somewhat differently in each of these agreements. This principle is referred to as most-favoured-nation (MFN) treatment (see box).

It is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT) that regulates trade in goods. Most-favoured-nation treatment is also a priority in the General Agreement on Trade in Services (GATS) (Article 2) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Article 4), although the principle is treated slightly differently in each agreement. Together, these three agreements cover the three main areas of trade managed by the WTO. 1. Most-favoured-nation treatment: equal treatment of other persons Under WTO agreements, countries generally cannot discriminate between their trading partners. Give someone a special favor (for example. B a lower rate of duty on one of its products), and you must do the same for all other WTO Members. The WTO provides a forum to negotiate agreements aimed at removing barriers to international trade and ensuring a level playing field for all, thereby contributing to economic growth and development.

The WTO also provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for the settlement of disputes arising from their interpretation and application. The current stock of trade agreements that make up the WTO consists of 16 different multilateral agreements (to which all WTO Members are parties) and two different plurilateral agreements (in which only a few WTO Members are involved). All WTO Agreements contain specific provisions for developing countries, including longer deadlines for the implementation of agreements and commitments, measures to improve their trade opportunities, and support to help them build the infrastructure for the WTO`s work, settle disputes and implement technical standards. The least developed countries enjoy special treatment, including an exemption from many provisions. Some exceptions are allowed. For example, countries may enter into a free trade agreement that applies only to goods traded within the group and discriminate against goods from outside. Or they can grant developing countries special access to their markets. Or a country may erect barriers against products considered unfairly traded from certain countries. And in the services sector, countries are allowed to discriminate in certain circumstances. However, the agreements allow these exceptions only under strict conditions. In general, most-favoured-nation treatment means that whenever a country breaks down a barrier to trade or opens a market, it must do so for the same goods or services of all its trading partners, whether rich or poor, weak or strong.

Sometimes the promise not to erect a trade barrier can be just as important as lowering one, because the promise gives companies a clearer view of their future opportunities. Stability and predictability will encourage investment, create jobs and enable consumers to take full advantage of competition and lower prices. The multilateral trading system is an attempt by governments to make the business environment stable and predictable. Wto Agreements are long and complex, as they are legal texts covering a wide range of activities. They cover agriculture, textiles and clothing, banking, telecommunications, government procurement, industry standards and product safety, food hygiene regulations, intellectual property and much more. But a set of simple and fundamental principles run through all these documents. These principles are the basis of the multilateral trading system. At the end of the Uruguay Round, developing countries were ready to assume most of the commitments required of developed countries. But the agreements have given them transition periods to adapt to WTO rules that are more unknown and perhaps more difficult, especially for the poorest and least developed countries. A ministerial decision adopted at the end of the round stipulates that the wealthiest countries should accelerate the implementation of market access obligations for goods exported by least developed countries and that they are requested for increased technical assistance. Recently, developed countries have begun to allow duty-free and quota-free imports for almost all products from least developed countries.

In all of this, the WTO and its members are still undergoing a learning process. The current Doha Development Agenda reflects the concern of developing countries about the difficulties they face in implementing the Uruguay Round agreements. The world is complex. The World Trade Organization is complex. This booklet is short, but it seeks to reflect the complex and dynamic nature of WTO trade and trade rules. It highlights the advantages of the trading system, but does not pretend that everything is perfect. If it were a perfect system, there would be no need to continue negotiations and constantly evolve and reform the system. Today, it is generally accepted that developing countries need both.

But the WTO agreements do not guarantee an increase in trade flows: they offer opportunities. Some countries are better able than others to seize these opportunities. Some need help: Aid for Trade and various other instruments aim to improve the ability of developing countries to participate more effectively in the global market. WTO agreements recognize that RTAs can benefit countries as long as they aim to facilitate trade between their parties. They also recognize that, in certain circumstances, these agreements could harm the commercial interests of other countries. Normally, the establishment of a customs union or free trade area would violate the principle of non-discrimination of all WTO Members (“most-favoured-nation countries”). However, Article 24 of the General Agreement on Tariffs and Trade (GATT), Article 5 of the General Agreement on Trade in Services (GATS) and the enabling clause (paragraph 2(c)) allow WTO Members to conclude RTAs as a special exception provided that certain strict criteria are met. That is what is happening. Each member treats all other members equally as the most favoured trading partners.

When a country enhances the benefits it offers to a trading partner, it must treat all other WTO Members equally so that they all enjoy the highest preference. In particular, the agreements should contribute to a greater free flow of trade between RTA countries without creating barriers to trade with the outside world. .