What is the purpose of national treatment obligation set out in Article III of the GATT 1994?

What is the purpose of national treatment obligation set out in Article III of the GATT 1994?

More specifically, the purpose of Article III “is to ensure that internal measures ‘not be applied to imported or domestic products so as to afford protection to domestic production’”.

What is national treatment principle?

National treatment is the principle of giving others the same treatment as one’s own nationals. National treatment also applies to imported goods once they enter the market, foreign and domestic services, and to foreign and local trademarks, copyrights, and patents.

What is the objective of the national treatment obligation?

The purpose of the national treatment rule is to eliminate “hidden” domestic barriers to trade by WTO Members by according imported products treatment no less favourable than that accorded to products of national origin.

What is the difference between GATT 1947 and GATT 1994?

While GATT no longer exists as an international organization, the GATT agreement lives on. The old text is now called “GATT 1947”. The updated version is called “GATT 1994”. Moreover, GATT’s key principles have been adopted by the agreements on services and intellectual property.

What is the purpose of GATT Article III and how is that purpose served?

The existence of GATT Article III generally impedes the adoption of policies and measures aimed at domestic protection, and thus promotes trade liberalization. In addition, regarding tariff concessions, GATT Article II recognizes tariffs have been used as tools for domestic industrial protection.

What is national treatment WTO?

National treatment is an integral part of many World Trade Organization agreements. National treatment is a basic principle of GATT/WTO that prohibits discrimination between imported and domestically produced goods with respect to internal taxation or other government regulation.

What does the WTO do?

In brief, the World Trade Organization (WTO) is the only international organization dealing with the global rules of trade. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

What are the basic principles of GATT?

The Basic Principles of the GATT:

• Most-Favored-Nation (MFN) Treatment: This is the fundamental principle of the GATT and it is not a coincidence that it appears in Article 1 of the GATT 1947.
• Reciprocity: GATT advocates the principles of “rights” and “obligations”.
• Transparency:
• Tariff Binding and Reduction:

What are the main principles of WTO?

Principles of the trading system

• Non-discrimination. It has two major components: the most favored nation (MFN) rule and the national treatment policy.
• Reciprocity.
• Binding and enforceable commitments.
• Transparency.
• Safety values.

What does GATT 1994 consist of?

It is an international treaty binding upon all WTO Members. The GATT 1994 is only concerned with trade in goods. The GATT 1994 aims at further liberalizing trade in goods through the reduction of tariffs and other trade barriers and eliminating discrimination.

What are the major differences between GATT and WTO?

While GATT is a simple agreement, there is no institutional existence, but have a small secretariat. Conversely, WTO is a permanent institution along with a secretariat. The participating nations are called as contracting parties in GATT, whereas for WTO, they are called as member nations.

What is the aim and effect test in WTO?

Under the aim-and-effect test, if a measure does not have a protective purpose or protective effect, then the products are not “like” or “directly competitive.” A government can tax the products as it wishes in keeping with its fiscal sovereignty.

What is Article III of the GATT 1994?

Article III of the GATT 1994 talks about ‘National Treatment on Internal Taxation and Regulation’. It prohibits internal taxes and other regulations that enhance the competitive position of domestic producers relative to that of foreign producers. [i] It tries to equate the treatment of domestic and foreign imported products in a market.

What is 148148 analysis of the GATT?

148 ANALYTICAL INDEX OF THE GATT ‘a charge equivalent to an internal tax imposed consistently with the provisions of paragraph 2 of Article III in respect of the like domestic product or in respect of an article from which the imported product has been manufactured or produced in whole or in part’.

What is the national treatment obligation in international trade law?

The counterpart in international trade law of the Biblical injunction to “love thy neighbour as thyself” is the national treatment obligation. Article III of the GATT 1994 talks about ‘National Treatment on Internal Taxation and Regulation’.

Are Germany and India violating the MFN principles of GATT 1994?

Then according to the MFN principles, both Germany & India are violating the MFN principles of GATT, 1994 and both the country has to avail the same benefit or privilege to all the member nations of the GATT 1994.