GK
WORLD ORGANISATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Non-discrimination
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Free trade
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Predictability
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Promotion of fair competition
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Development and economic reform should be encouraged
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Detailed explanation-1: -This principle is known as most-favoured-nation (MFN) treatment (see box). It is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods.
Detailed explanation-2: -The correct answer is Non-discrimination. The WTO establishes a framework for trade policies; it does not define or specify outcomes. That is, it is concerned with setting the rules of “trade policy.” Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO.
Detailed explanation-3: -The national treatment principle prohibits countries from using domestic taxes and regulations to offset the value of tariff concessions and is, therefore, a significant tool in promoting trade liberalization. The national treatment principle, as well as the MFN principle, is often invoked in WTO disputes.