AbstractsEconomics

This thesis will provide an overview of the main principles of the WTO and the before mentioned objectives. The object and purpose of this thesis is to shed some light on the interpretation of the main principles provided in the WTO. These principles are very important in international relation between states and govern a very sensitive spectrum in economy of states. It is important for the principle to be clear, transparent and be consistent as to secure more liberal trade and furthermore world peace and economic stability by making the world one economic area, this also has the side effect of increasing peoples well-fare. To fully understand the principles they must be examined, therefore in this paper the main focus will be on the interpretation of the principles and how they have been applied in practice. Thus the WTO agreements will be examined as well as the interpretation of Appellate Body (and the panels). Hence, a brief introduction of the history, structure and function of the WTO will be examined in chapter 2. This provides a better understanding of the principles. Chapter 3 provides an overview of the practice and interpretation of the main principles. Tariffs are most common and obvious restriction on trade. Tariffs are also the only restriction that is not prohibited by the WTO, thus the „Tariff Only“ principle, and that will be the first principle that will be reviewed. The Most Favoured Nation treatment is the next principle that will be covered, as it has been known to be the cornerstone on which the WTO was build upon. The obligation provides import and export from Members the best available treatment offered to any other Member. National Treatment obligation provides that when product has reached into a foreign market, that the imported country shall not treat the imported product less than domestic ones. Hence, the National Treatment principle will be examined after the MFN principle. Other duties and charges on import or export are prohibited, however that is not without exceptions. Non-tariff barriers are under certain circumstances allowed and will be examined under the National Treatment principle in chapter 3. The main principles cannot be completely understood unless their exceptions are examined. But that will be the subject of chapter 4.