Five principles of world trade organization
World Trade Organization (WTO), international organization established to supervise and liberalize world trade. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1947 in the expectation that it would soon be replaced by a specialized agency of the United Nations (UN) to be called the International Trade Organization (ITO). requires a nation to treat all its trading partners alike. The tariff rate levied on a given commodity must be the same for all supply nations and tariff concessions exchanged between any two countries must be extended to all member nations of the WTO. Customs unions and Free Trade Areas are an exception to the MFN principle.