The first principle to introduce is trading without discrimination, having two important components which are most-favoured-nation (MFN) and national treatment. Both are inserted as main rules in WTO on goods, intellectual property and services (Hoekman & Kostecki, 2009). However, the MFN rule can be briefly explained as a rule that makes a product made in a particular member country to be treated not less favourably (WTO, n.d.), or in simple language to be treated the same as a similar product that is made in another country. Although exceptions can be allowed, such as creating Free Trade Agreements such as the Gulf Cooperation Council (GCC), or developing countries may be given special access into their markets. But generally, if a country decided to the lowering of trade barrier or market opening, the same must happen to the same products from all members and partners no matter the circumstances (Hoekman & Kostecki, 2009). The second component of non-discrimination trading principle is national treatment. After the foreigner goods enter a specific market, it has to be treated equally with local goods (WTO, n.d.). National treatment is applied on services, trademarks, patents and copyrights as well.
The second principle of the trading system is freer trade. Encouraging trade makes trading much simpler to the members, by lowering trade barriers more members are encouraged. Customs duties, tariffs, import bans, or quotas are well known discouraging barriers. The treatments focused in decreasing custom duties or tariffs on imported goods. Regulations...