International Trade Law Essay
Part A
It is only once we take into account our surroundings can we fully appreciate the true impact of globalisation and the effect it has on our day-to-day lives. The clothes we wear, the laptops we use, and the chairs we sit on, are just a few simple examples of items that have been made available to us as a result of the continued integration of the world’s markets. However, as global markets continue to integrate, further compounded by tough economic conditions in an intense and competitive marketplace, the need to protect domestic production is deemed to be vital to a country’s economic success. As a result of this self-preservation causes political conflict and strains international relations. To remove the possibility of such discrimination from taking place, the GATT and the WTO have been put in place to insure that the 156 members adhere to the various principles within the two agreements.
Articles I and III of the GATT outline two of the most fundamental principles regarding non-discrimination in WTO law; the most-favoured-nation (MFN) treatment obligation and the national treatment obligation (NTO). * The MFN treatment obligation, which is set out in Article I of the GATT, is described in the case of EC- Tariff Preferences as the ‘cornerstone of the GATT’ and ‘one of the pillars of the WTO trading system’ Its principle purpose is to ensure that WTO members have equal opportunities to import and export goods and services with other members.
The MFN treatment obligation is applied using a three-tier test of consistency under Article I:1. The test examines whether any unfair advantage exists between ‘like products’ and whether such an advantage is granted ‘ immediately and unconditionally’ to all ‘like products’ concerned. Such advantages include measures such as customs duties and internal taxes. Article I:1 also takes into account de facto as well as de jure discrimination as seen in the case of Canada-Autos. The scope of Article I:1 is
It is only once we take into account our surroundings can we fully appreciate the true impact of globalisation and the effect it has on our day-to-day lives. The clothes we wear, the laptops we use, and the chairs we sit on, are just a few simple examples of items that have been made available to us as a result of the continued integration of the world’s markets. However, as global markets continue to integrate, further compounded by tough economic conditions in an intense and competitive marketplace, the need to protect domestic production is deemed to be vital to a country’s economic success. As a result of this self-preservation causes political conflict and strains international relations. To remove the possibility of such discrimination from taking place, the GATT and the WTO have been put in place to insure that the 156 members adhere to the various principles within the two agreements.
Articles I and III of the GATT outline two of the most fundamental principles regarding non-discrimination in WTO law; the most-favoured-nation (MFN) treatment obligation and the national treatment obligation (NTO). * The MFN treatment obligation, which is set out in Article I of the GATT, is described in the case of EC- Tariff Preferences as the ‘cornerstone of the GATT’ and ‘one of the pillars of the WTO trading system’ Its principle purpose is to ensure that WTO members have equal opportunities to import and export goods and services with other members.
The MFN treatment obligation is applied using a three-tier test of consistency under Article I:1. The test examines whether any unfair advantage exists between ‘like products’ and whether such an advantage is granted ‘ immediately and unconditionally’ to all ‘like products’ concerned. Such advantages include measures such as customs duties and internal taxes. Article I:1 also takes into account de facto as well as de jure discrimination as seen in the case of Canada-Autos. The scope of Article I:1 is