Free Trade Agreement: World Trade Organization & Most Favoured Nation Status
Grandma explained that there is an international organisation called the World Trade Organization whose main goal is to remove tariffs around the world and help countries become wealthier by increasing sales of goods, and helping people all over the world live better by making goods easier to find and cheaper to buy. One hundred and sixty-four countries are part of this organization and they all agree to the rules for doing business with each other. Each free trade deal takes years to write and so the WTO has an army of very clever economists who help countries write these agreements.
She also told them about the ”Most Favoured Nation Status” which is a very fancy way of one country telling the other country that they are BFFs and now have special rights. These rights ensure that each country will always get the same good deal offered to other countries of equal status. That means one country cannot be a better BFF than another one.
The travelers nodded thoughtfully. They had not realized that so much thought and work had gone into getting roses, pineapples and all the other things they used into the country.
“But, if free trade is generally such a good thing, why are people always so angry about it?” asked Teyus.
Grandma smiled and poured herself another glass of spicy pineapple juice.