WTO Advantages & Disadvantages

WTO membership gives a country the legal right not to be discriminated against in its trade with the other members of the organization. The principle of non-discrimination, which is especially important for a country's exports, is laid down in the most favoured nation (MFN) clause and the national treatment clause. In addition, every WTO member is entitled to seek redress against any impairment of its rights by another country through the dispute settlement mechanism. Another important element of WTO membership is the right to take part in the decision-making process of the organization and in the conduct of future multilateral trade negotiations.

On the other hand, WTO members must respect the general rules and obligations contained in the various WTO Agreements, in particular the GATT 1994 (goods), the GATS (services) and the TRIPs (intellectual property) Agreements. A flexible application is foreseen in many of these Agreements for developing and least developed countries, as well as for countries moving from a centrally-planned to a market, free-enterprise economy. Each WTO country must make binding commitments on market access for goods and services. The degree of access for developing countries depends on their development, financial and trade needs.