Trade Agreements, Origin & Policy
World Trade Organization
Also known as: WTO
The World Trade Organization is the international body that administers the rules of global trade, provides the forum for negotiating trade agreements, and adjudicates disputes among its member economies. It rests on foundational principles such as most-favored-nation treatment and national treatment, and its agreements cover goods, services, and intellectual property. By binding members to agreed tariff ceilings and non-discrimination commitments, and by offering a mechanism to challenge measures that violate the rules, the WTO provides the predictable, rules-based framework within which the vast majority of world trade is conducted.
One agreement matters to you and the rest do not. The Valuation Agreement is why "price actually paid or payable" means the same thing in Rotterdam as in Long Beach — which also means a valuation position you took in one market is quotable, and quotable against you, in another.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.