The World Trade Organization provides a platform for government organizations to negotiate trade agreements. Government bodies resolve their trade disputes on this platform. WTO is a stage where different nations come together to solve their trade problems with other nations. There is no international trade agreement if organizations fail to enforce their policies when any of the signatory members fail to comply with those policies. Dispute resolution therefore increases the applied cost of guarantors' obligations that they assume in the global commercial contract, which is why it is considered an effective mechanism. In fact, WTO members met during the “Uruguay Round of Multilateral Trade Negotiations”, which shows that members are obliged to comply with WTO policies and regulations. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Principles of the Trading System The principles of the trading system include; Trade without discrimination: This principle provides for the most favorable nation and free trade. According to WTO policies, no member of the committee can discriminate against nations on any basis regarding trade. For example, allow one nation to pay less duties than other nations, but according to the WTO agreement, nations must not favor anyone. This aspect is also included in the “General Agreement on Tariffs and Trade” (GATT) in the first article. It is also included in other trade agreements such as GATS and TRIPs. Free trade or freer trade is lowering trade barriers for favored nations, which is the most efficient method of encouraging trade. Barriers include import quotas, customs duties, and the removal of import bans on certain items. There have been eight rounds of trade consultations since the inception of the GATT in 1947-48, and the ninth round of trade negotiations following the Doha Development Agenda is underway. Another principle of the trading system is predictability. Often committing someone not to raise an import barrier means the same thing as lowering one, because a company can clearly see its future opportunities with a commitment. Predictability and stability provide support to business in terms of job opportunities, investment opportunities and also competitive advantages for consumers in terms of lower prices and greater choice. The government seeks to stabilize the business environment through a multilateral trading system. Remember: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay The third principle of the trading system is to promote fair competition; some countries consider the WTO a free trade platform, but this is not entirely true. The platform provides protection to the nations trade and also allows tariffs. However, the WTO is a platform that establishes some rules and policies for undistorted, open and fair trade competition. These rules also apply to subsidies and to nations that practice dumping (exporting at lower prices to gain extra market share). Economic reforms and promotion of development; The WTO was established to contribute to the development of nations, while some emerging countries take a long time to implement their strategies with the agreement of the system. The agreement itself contains provisions of the GATT, which pledges to allow developing countries trade concessions and special assistance. Three-quarters of WTO members are developing countries.