The World Trade Organization provides a platform for government organizations to negotiate trade agreements. Government agencies resolve their commercial disputes on this platform. WTO is a stage where different countries come to resolve their trade issues with other countries. No international trade agreement is of any use if organizations fail to enforce their policies when any member of the signatories violates those policies. Therefore, dispute resolution increases the applied cost of guarantors' obligations that they undertake under the global trade contract, which is why it is considered an effective mechanism. In fact, WTO members came together in the “Uruguay Round of Multilateral Trade Negotiations,” demonstrating that members are obligated to comply with WTO policies and regulations. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original Essay Principles of the Trading SystemThe principles of the trading system include: Trade without discrimination: This principle includes most favorable nation and free trade . According to WTO policies, no member of the committee can discriminate against nations on any basis in matters of trade. For example, allowing a country to pay less customs duties than other countries, but according to the WTO agreement, countries must not favor anyone. This aspect is also included in the “General Agreement on Tariffs and Trade” (GATT) Article 1. It is also included in other trade agreements such as GATS and TRIPS. Free or freer trade reduces trade barriers for favored nations, which is the most effective method of encouraging trade. Barriers include import quotas, customs duties and the removal of import bans on certain products. There have been eight rounds of trade consultations since the inception of the GATT in 1947-48, and the ninth round of trade negotiations is underway after the Doha Development Agenda. Another principle of the trading system is predictability. Often, committing someone not to erect an import barrier is of equal importance to lowering it, because a company can clearly see its future opportunities through commitment. Predictability and stability support the business in terms of employment opportunities, investment opportunities and also competitive advantages for consumers in terms of lower prices and increased choices. The government is trying to stabilize the business environment through the multilateral trading system. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get a Custom Essay The third principle of the trading system is to promote fair competition; Some countries view the WTO as a free trade platform, but this is not entirely true. The platform provides protection to nations' trade and also allows tariffs. However, the WTO is a platform that lays down certain rules and policies for undistorted, open and fair trade competition. These rules also apply to subsidies and countries that dump (export at lower prices to gain additional market share). Economic reforms and encouragement of development; The WTO was created to contribute to the development of nations while certain emerging countries take a long time to implement their strategies with the agreement of the system. The agreement itself contains the..