Principle of National Treatment

The principle of national treatment stands alongside with most-favoured-nation treatment (MFN), one of the most significant pillars of the World Trade Organization. It is included in the Art III of GATT and prohibits any discrimination for foreign products, as compared to similar domestic goods. The aim of the commitment is therefore to grant the best possible treatment in relation to these products and to prevent any form of protectionism — measures that differentiate domestic and imported goods. Continue reading Principle of National Treatment

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The scope of the likeness in Art III:4 – competitive relationship in the market place

As regard to the criteria of Border Tax the Appellate Body in the EC-Asbestos case hold that competitive relationship is highly relevant and both necessary and sufficient for determination of likeness standard under Art III:4 and therefore regulatory purposes are irrelevant. National treatment principle can be applicable only with respect to ‘like products’ being in a close competitive relationship in the marketplace. Consequently, protectionist measures can be possibly applied only with the purpose of affecting the significant situation in the market of such products.[1] The Appellate Body stated as following:

Continue reading The scope of the likeness in Art III:4 – competitive relationship in the market place

Standard of ‘likeness’ in Art III:2, second sentence

Article III:2, second sentence provides: ‘no contracting party shall otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph 1.’

As mentioned above, the reference to Article III:1 establishes the general principle which assumes that internal taxes and other internal charges should not be applied to imported or domestic products so as to afford protection to domestic production. Continue reading Standard of ‘likeness’ in Art III:2, second sentence

‘Like Product’ : the relationship between Article III:1 and Article III:2, first sentence

A literary interpretation of Article III:2  assumes that there are two separate obligations of national treatment and only the second sentence specifically refers to Art. III:1. The notion ‘as to afford protection’ included in Art III:1 has no substantive meaning in Art. III:2 first sentence and therefore the provision of Art III:2, first sentence has no explicit reference to the general principles against protectionism of Article III:1. Continue reading ‘Like Product’ : the relationship between Article III:1 and Article III:2, first sentence