The World Trade Organization (WTO), established on January 1, 1995, is an open, non- discriminatory trading system. As a successor to the GATT, established in the wake of the Second World War, it is to help world trade flow freely, fairly and predictably. Members of the WTO follow three most important principles: — the most-favored nation concept, i.e., every contracting party grants all other parties any tariff advantages that it grants to any other country. —although customs duties are recognized as a legitimate instrument of protection, they should be reduced as far as possible. — the abolition of quantitative restrictions on imports these are permissible, however, if necessitated by reasons relating to the balance of payments, and these exceptions are carefully supervised. While the WTO is still young, the multilateral trading system that was originally set up under GATT is already 50 years old. The system celebrated its golden jubilee in Geneva on 19 May 1998, with many heads of state and government leaders attending. The past 50 years have seen an exceptional growth in world trade. Merchandise exports grew on average by 6 % annually. Total trade in 1997 was 14-times the level of 1950. GATT and the WTO have helped to create a strong and prosperous trading system contributing to unprecedented growth.. The system was developed through a series of trade negotiations, or rounds, held under GATT. The first rounds dealt mainly with tariff reductions but later negotiations included other areas such as anti-dumping and non-tariff measures. The latest round — the 1986-1994 Uruguay Round — led to the WTO's creation. The negotiations did not end there. Some continued after the end of the Uruguay Round. In February 1997 agreement was reached on telecommunications services, with 69 governments agreeing to wide-ranging liberalization measures that went beyond those agreed in the Uruguay Round. In the same year 40 governments successfully concluded negotiations for tariff-free trade in information technology products, and 70 members concluded a financial services deal covering more than 95 % of trade in banking, insurance, securities and financial information. At the May ministerial meeting in Geneva, WTO members agreed to study trade issues arising from global electronic commerce. The next ministerial conference is due to be held in the United States in late 1999. In 2000, new talks are clue to start on agriculture and services and a range of other issues. The GATT was established in______.