Basic principles Basically WTO creates framework for trade policies and it doesnt define outcomes.

Moreover its concerned for the setting of trade policy game, not actually with the results of the game

Five important principles in understanding WTO

Nondiscrimination Reciprocity Enforceable commitments Transparency Safety valves. Organization Culture : 11 committees under the management. Every member participate in the management. Textile department is separate from the other committees but still under the management. The WTO oversees about 60 different agreements which have the status of international legal texts. The agreement which is on trade aspects of intellectual property rights sets down minimum standard to different forms of intellectual property regulation. It was negotiated at the end of Uruguay round of the general agreement on tariffs and trade in 1994.

How WTO Dispute Settlement works

Three main stages Consultation Formal litigation Implementation

all disputes start with a request of consultations, In which member brings case to WTO sets out its objections to the trade measure of another member government. A large proportion of cases are successfully resolved during consultation. If you dont get a satisfactory result you can go for the Formal litigation. Panel of three to five person with the background in trade law, then offering both parties an opportunity to comment and seek clarification and then the case will be implemented and judgment will be announce.

Nondiscrimination

Nondiscrimination with two Major components, the most favored nation (MFN) rule, and the national treatment principle. Both are embedded in the main WTO rules on goods, services, and intellectual property, but their precise scope and nature differ across these three areas. This is true of the national treatment principle, which is a specific, when it comes to services not a general commitment .The MFN rule requires that a product made in one member country be treated no less favorably . Thus, if the best treatment granted a trading partner supplying a specific product is a 5 percent tariff, this rate must be applied immediately for imports of this good originating in all WTO members.

MFN also provides smaller countries a guarantee that countries with large scale will not exploit their market power by raising tariffs against them in periods when times are bad and domestic industries are clamoring for protection or, alternatively, give specific countries preferential treatment for foreign policy reasons.