Three principles are fundamental to World Trade Organization (WTO) operations. Among these, the reciprocity principle means that when country A grants a tariff concession to country B, the same concession automatically applies to all other countries that are member of the WTO.

Question

Quizplus · Accepted Answer

The reciprocity principle in the context of the WTO means that countries negotiate concessions and benefits that are mutually advantageous, but the principle described in the question actually refers to the Most Favored Nation (MFN) principle, which mandates that any advantage, favor, privilege, or immunity granted by any WTO member to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other WTO members.

Three Principles Are Fundamental to World Trade Organization (WTO) Operations