The World Trade Organization (WTO) is a global organization that was established in 1995 to promote free trade and economic growth among member countries. The WTO agreement is a legal document that sets out the rules and principles of international trade that all member countries must follow. Here’s a closer look at the definition of the WTO agreement.

The WTO agreement is a comprehensive set of rules that govern international trade. It covers a wide range of issues related to trade, including tariffs, subsidies, intellectual property, and services. The agreement is designed to ensure that trade between member countries is conducted in a fair and transparent manner.

One of the key principles of the WTO agreement is the Most-Favored Nation (MFN) principle. This principle requires that member countries treat all other members equally when it comes to trade. This means that if a country grants a special trade advantage, such as a lower tariff or a preferential treatment, to one WTO member, it must offer the same advantage to all other members.

The WTO agreement also includes the National Treatment principle, which requires that foreign goods and services must be treated the same as domestic goods and services. In other words, once foreign goods enter a country, they should be subject to the same regulations and taxes as domestic goods.

Another important principle of the WTO agreement is the dispute settlement mechanism. This mechanism allows member countries to resolve disputes related to trade in a fair and impartial manner. The WTO has a panel of experts who review the evidence and make a ruling based on the rules of the WTO agreement.

Overall, the WTO agreement is a complex but essential document that helps to promote free and fair trade between member countries. By establishing clear rules and principles of trade, the agreement ensures that all countries can benefit from the global economy and contribute to global economic growth.