Explain the GATT principle of nondiscrimination.
http://www2.adb.org/documents/others/ogc-toolkits/wto/wto0300.asp
The General Agreement on Tariffs and Trade (GATT) is a multilateral trade agreement that was signed in 1947 and formed the basis for the establishment of the World Trade Organization (WTO) in 1995. One of the core principles of GATT is the principle of nondiscrimination, which aims to ensure fair and equal treatment of all trading partners.
The principle of nondiscrimination in GATT is mainly manifested through two key provisions: the most-favored-nation (MFN) treatment and the national treatment.
1. Most-Favored-Nation (MFN) Treatment: Under this principle, a member country of GATT/WTO is required to treat all other member countries equally when it comes to trade. This means that any advantage, special treatment, or privilege granted to one country must be extended to all other member countries. Essentially, no country should be given preferential treatment over others. This ensures that trade barriers, such as tariffs and quotas, are applied equally to all trading partners.
To get a better understanding of the MFN principle, you can refer to the GATT/WTO agreements, specifically Article I of GATT 1994, which outlines the obligations related to the MFN treatment. You can also look into the specific commitments made by member countries in their schedules of tariff concessions and other relevant documents.
2. National Treatment: This principle focuses on ensuring that imported products are treated no less favorably than domestically produced goods. It prohibits discrimination between imported and domestic products, once the imported goods have entered the domestic market. The purpose of this principle is to prevent protectionist measures that favor domestic industries over foreign competitors.
To explore the national treatment principle, you can refer to Article III of GATT 1994, which lays out the obligations related to this principle. It is important to delve into the specific regulations and policies implemented by member countries to ensure that imported products receive the same treatment as domestic products.
Understanding the GATT principle of nondiscrimination requires studying the relevant GATT/WTO agreements, including their articles, schedules, and other supplementary documents. Additionally, any updates or amendments made to these agreements by the WTO should also be considered.