What Is The Different Between Wto(world Trade Organisation) And Fta (free Trade Agreement)?

thanks a lot.

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2 Responses to What Is The Different Between Wto(world Trade Organisation) And Fta (free Trade Agreement)?

  1. - says:

    While FTA treats producers of its member countries differently from those outside the agreement, the WTO requires MFN (most favorable nation) treatment, the principle of nondiscrimination, to be generally applied equally to all the countries.
    This leads to the often-mentioned drawback of FTA – the trade diversion effect. When the WTO principle is applied, imports from any country would be levied the same tariff, which would enable importing from the lowest cost producer among all the countries. But once FTA is concluded the goods could be substituted by the products from an FTA member country, which is not necessarily the most efficiently produced in the world. As a result, FTA could decrease the economic welfare of the member countries.

  2. Stanley says:

    WTO is an International organisation.
    FTA is an International agreement !

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