The WTO is sometimes referred to as a free trade institution, but that is not entirely accurate. The system allows tariffs and, in limited circumstances, other forms of protection. Specifically, it is a set of rules dedicated to open, fair and undistorted competition. Open markets can be beneficial, but they also require adjustments. WTO agreements allow countries to gradually introduce changes through gradual liberalization. Developing countries generally have more time to meet their obligations. Both the U.S.-Israel Free Trade Agreement and the U.S.-Canada Free Trade Agreement were presented to the GATT contracting parties in the form of an interim agreement for the creation of a free trade area.25 Free trade agreements with Jordan, Chile, Singapore, Australia, Morocco, Bahrain and DR-CAFTA were presented as free trade and services agreements26. A draft report on NAFTA was submitted for consideration by the WTO Regional Trade Agreements Committee in September 20027 on compliance with Article XXIV , free trade agreements must meet four essential requirements: (1) tariffs and other restrictive trade rules must be abolished; (2) the whole trade must be covered for the most part; (3) External tariffs and trade rules, i.e.: measures applicable to non-parties must not be higher or restrictive than the tariffs and trade rules applicable before the signing of the free trade agreement or interim agreement; and (4) Interim agreements must include a plan and timetable for achieving these objectives within a reasonable time frame.8 Although GATT requires free trade agreements to remove tariffs and restrictive rules, it authorizes parties to apply GATT customs duties, restrictions and inconsistent measures imposed by certain GATT sections of the GATT. `if necessary.` 9 With regard to the qualification of the original criteria, there is a difference in treatment between inputs that are inside and outside a free trade agreement.
Inputs originating from a foreign party are normally considered to originate from the other party when they are included in the manufacturing process of that other party. Sometimes the production costs generated by one party are also considered to be those of another party. Preferential rules of origin generally provide for such a difference in treatment in determining accumulation or accumulation. This clause also explains the impact of a free trade agreement on the creation and diversion of trade, since a party to a free trade agreement is encouraged to use inputs from another party to allow its products to originate.  WTO agreements are long and complex, as they are legal texts covering a wide range of activities. They cover agriculture, textiles and clothing, banking, telecommunications, public procurement, industrial standards and product safety, food hygiene rules, intellectual property and much more. But a number of simple and fundamental principles can be found in all these documents. These principles are the basis of the multilateral trading system.