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WTO (World Trade Organization) – The Referee! 🏁

Established: 1st Jan 1995 (Replaced GATT). HQ: Geneva, Switzerland. Members: 164+.

The Job: To ensure trade flows as smoothly, predictably, and freely as possible.

Key Principles 📜

1. MFN"Most Favored Nation. Treat everyone equally."
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2. National Treatment"Treat foreigners same as locals."
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3. Predictability"Don't raise tariffs suddenly."
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4. Fair Competition"No dumping, no unfair subsidies."

1. MFN (Most Favored Nation) 🤝

  • Rule: You cannot discriminate between trading partners.
  • If India lowers tax for USA to 5%, it MUST lower it for China, Japan, and everyone else to 5%.
  • Exception: FTAs (like NAFTA) are allowed.

2. National Treatment 🏠

  • Once foreign goods enter your country, you cannot discriminate against them.
  • Example: India cannot put a special "Luxury Tax" only on Ford cars and not on Tata cars. Both must be taxed equally.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. WTO was established in:

1947
1995
2000
1991

💡 Final Wisdom: "Without WTO, trade would be a jungle (Survival of the fittest). WTO brings 'Rule of Law' to the global market." ⚖️

Next up: WTO Agreements - The Final Lesson! 🏁

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