What is the 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 are the two exceptions to the Most Favored Nation principle?
GATT Article XXIV provides that regional integration may be allowed as an exception to the MFN principle only if the following conditions are met: (1) tariffs and other barriers to trade must be eliminated with respect to substantially all trade within the region; and (2) the tariffs and other barriers to trade applied …
What are the differences between the national treatment obligation of GATT and the national treatment obligation in GATS?
It is wider in scope because, while national treatment under GATT is concerned with measures affecting products per se, the domain of this obligation in the GATS includes not only measures affecting services products, but also measures affecting service suppliers.
What is the difference between GATT and GATS?
The General Agreement on Tariffs and Trade (GATT) is the central WTO agreement covering goods trade, while the General Agreement on Trade in Services (GATS) is the WTO agreement covering services trade.
What is the difference between WTO and national treatment?
Together with the most favoured nation principle, national treatment is one of the cornerstones of WTO trade law. 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.
How does the WTO differ from GATT?
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. GATT agreement is primarily multilateral, but plurilateral agreement is added to it later. In contrast, WTO agreements are purely multilateral.
What is the MFN treatment under the GATT?
Most-favoured-nation (MFN): treating other people equally Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.
What is GATT and WTO explain the main objectives and principles of GATT?
2. The GATT is an international trade agreement whose objectives are: (a) to help raise standards of living; (b) to achieve full employment; > (c) to develop the world’s resources; (d) to expand production and exchange of goods; (e) to promote economic development.
What are the objectives and functions of GATT?
The General Agreement on Tariffs and Trade (GATT) was created after World War II to aid global economic recovery through reconstructing and liberalizing global trade. GATT’s main objective was to reduce barriers to international trade through the reduction of tariffs, quotas and subsidies.
What is the GATT Article III?
GATT Article III requires that WTO Members provide national treatment to all other Members. Article III:1 stipulates the general principle that Members must not apply internal taxes or other internal charges, laws, regulations and requirements affecting imported or domestic products so as to afford protection to domestic production.
What are the principles of GATT 1994?
Article I and Article III of the GATT 1994, deals with Most Favoured Nation Principle and National Treatment Principle respectively. With further development in the scope of these principles, now these principles not only deal with the trade in goods practices rather now they also govern the trade in services and trade in IPR.
What is the Article III national treatment obligation?
… The Article III national treatment obligation is a general prohibition on the use of internal taxes and other internal regulatory measures so as to afford protection to domestic production. This obligation clearly extends also to products not bound under Article II.
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’.