The following are the subtopics of National Treatment:
- Definition
- History
- WTO Agreement on Trade in Goods
- WTO Agreement on Trade in Services
- GATS National Treatment Commitments
- Exceptions to National Treatment
- Enforcement of National Treatment
- The Future of National Treatment
Definition
National treatment is a principle of international trade law that requires countries to treat imported goods and services no less favorably than domestic goods and services. This means that foreign companies must be given the same opportunities to compete in a country’s market as domestic companies.
History
The principle of national treatment has been around for centuries. It was first codified in the 1860s in the Treaty of Paris, which established the Universal Postal Union. The principle was later included in the General Agreement on Tariffs and Trade (GATT), which was signed in 1947.
WTO Agreement on Trade in Goods
The WTO Agreement on Trade in Goods (GATT) is the main international agreement governing international trade in goods. The GATT includes a number of provisions on national treatment, including the following:
- Article III:1 of the GATT states that “no country shall, directly or indirectly, discriminate between its own and foreign goods in respect of all laws, regulations and requirements affecting their internal sale, purchase, transportation, distribution or use.”
- Article III:2 of the GATT states that “no country shall, directly or indirectly, impose on imports any internal taxes or other charges of any kind in excess of those applied, directly or indirectly, to like domestic products.”
- Article III:4 of the GATT states that “products imported from any country shall not be subject, directly or indirectly, to taxes, charges or other exactions of any kind in excess of those applied, directly or indirectly, to like domestic products.”
WTO Agreement on Trade in Services
The WTO Agreement on Trade in Services (GATS) is the main international agreement governing international trade in services. The GATS includes a number of provisions on national treatment, including the following:
- Article I:1 of the GATS states that “Members shall apply the following general principles to all measures affecting trade in services: (a) Most-favored-nation treatment; (b) National treatment; and (CC) Transparency.”
- Article II:1 of the GATS states that “With respect to any measure covered by this Agreement, each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers.”
- Article XVII:1 of the GATS states that “In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers in like circumstances.”
GATS National Treatment Commitments
Each WTO member has made a number of national treatment commitments in the GATS. These commitments are contained in each member’s Schedule of Specific Commitments. The commitments vary from member to member and from sector to sector.
Exceptions to National Treatment
The GATS allows for a number of exceptions to the national treatment principle. These exceptions are listed in Article XIV of the GATS. The most common exceptions are for national security, public morals, public order, public health, and the protection of human, animal or plant life or health.
Enforcement of National Treatment
The WTO Dispute Settlement Understanding (DSU) provides a mechanism for countries to enforce their national treatment rights. If a country believes that another country is not complying with its national treatment obligations, it can file a complaint with the WTO. The WTO Dispute Settlement Body will then appoint a panel to investigate the complaint. If the panel finds that the other country is not complying with its national treatment obligations, the other country will be required to take corrective action.
The Future of National Treatment
The principle of national treatment is likely to remain an important part of international trade law in the future. The WTO is currently negotiating a new round of trade negotiations, which is known as the Doha Round. The Doha Round includes a number of proposals on national treatment, including proposals to improve the transparency of national treatment measures and to strengthen the enforcement of national treatment rights.
National treatment is a principle of international trade law that requires countries to treat imported goods and services no less favorably than domestic goods and services. This means that foreign companies must be given the same opportunities to compete in a country’s market as domestic companies.
The principle of national treatment has been around for centuries. It was first codified in the 1860s in the Treaty of Paris, which established the Universal Postal Union. The principle was later included in the General Agreement on Tariffs and Trade (GATT), which was signed in 1947.
The GATT is the main international agreement governing international trade in goods. The GATT includes a number of provisions on national treatment, including the following:
- Article III:1 of the GATT states that “no country shall, directly or indirectly, discriminate between its own and foreign goods in respect of all laws, regulations and requirements affecting their internal sale, purchase, transportation, distribution or use.”
- Article III:2 of the GATT states that “no country shall, directly or indirectly, impose on imports any internal taxes or other charges of any kind in excess of those applied, directly or indirectly, to like domestic products.”
- Article III:4 of the GATT states that “products imported from any country shall not be subject, directly or indirectly, to taxes, charges or other exactions of any kind in excess of those applied, directly or indirectly, to like domestic products.”
The WTO Agreement on Trade in Services (GATS) is the main international agreement governing international trade in services. The GATS includes a number of provisions on national treatment, including the following:
- Article I:1 of the GATS states that “Members shall apply the following general principles to all measures affecting trade in services: (a) Most-favored-nation treatment; (b) National treatment; and (c) Transparency.”
- Article II:1 of the GATS states that “With respect to any measure covered by this Agreement, each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers.”
- Article XVII:1 of the GATS states that “In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers in like circumstances.”
Each WTO member has made a number of national treatment commitments in the GATS. These commitments are contained in each member’s Schedule of Specific Commitments. The commitments vary from member to member and from sector to sector.
The GATS allows for a number of exceptions to the national treatment principle. These exceptions are listed in Article XIV of the GATS. The most common exceptions are for national security, public morals, public order, public health, and the protection of human, animal or plant life or health.
The WTO Dispute Settlement Understanding (DSU) provides a mechanism for countries to enforce their national treatment rights. If a country believes that another country is not complying with its national treatment obligations, it can file a complaint with the WTO. The WTO Dispute Settlement Body will then appoint a panel to investigate the complaint. If the panel finds that the other country is not complying with its national treatment obligations, the other country will be required to take corrective action.
The principle of national treatment is likely to remain an important part of international trade law in the future. The WTO is currently negotiating a new round of trade negotiations, which is known as the Doha Round. The Doha Round includes a number of proposals on national treatment, including proposals to improve the transparency of national treatment measures and to strengthen the enforcement of national treatment rights.
National treatment is important because it helps to promote trade and InvestmentInvestment. When foreign companies are treated no less favorably than domestic companies, they are more likely to invest in a country and to export their goods and services to that country. This can lead to increased economic growth and development.
National treatment is also important because it helps to promote competition. When foreign companies are able to compete on an equal footing with domestic companies, it can lead to lower prices and higher quality goods and services for consumers.
However, there are some potential drawbacks to national treatment. For example, national treatment can sometimes lead to job losses in domestic industries. This is because foreign companies may be able to produce goods and services more efficiently than domestic companies. Additionally, national treatment can sometimes lead to a decrease in the quality of goods and services. This is because foreign companies may be more focused on reducing costs than on producing high-quality goods and services.
Overall, national treatment is a positive force for trade and investment. However, it is important to be aware of the potential drawbacks of national treatment.
National Treatment
National treatment is a principle of international trade law that requires countries to treat imported goods and services no less favorably than domestic goods and services. This means that foreign companies must be given the same opportunities to compete in a country’s market as domestic companies.
Definition
National treatment is a principle of international trade law that requires countries to treat imported goods and services no less favorably than domestic goods and services. This means that foreign companies must be given the same opportunities to compete in a country’s market as domestic companies.
History
The principle of national treatment has been around for centuries. It was first codified in the 1860s in the Treaty of Paris, which established the Universal Postal Union. The principle was later included in the General Agreement on Tariffs and Trade (GATT), which was signed in 1947.
WTO Agreement on Trade in Goods
The WTO Agreement on Trade in Goods (GATT) is the main international agreement governing international trade in goods. The GATT includes a number of provisions on national treatment, including the following:
- Article III:1 of the GATT states that “no country shall, directly or indirectly, discriminate between its own and foreign goods in respect of all laws, regulations and requirements affecting their internal sale, purchase, transportation, distribution or use.”
- Article III:2 of the GATT states that “no country shall, directly or indirectly, impose on imports any internal taxes or other charges of any kind in excess of those applied, directly or indirectly, to like domestic products.”
- Article III:4 of the GATT states that “products imported from any country shall not be subject, directly or indirectly, to taxes, charges or other exactions of any kind in excess of those applied, directly or indirectly, to like domestic products.”
WTO Agreement on Trade in Services
The WTO Agreement on Trade in Services (GATS) is the main international agreement governing international trade in services. The GATS includes a number of provisions on national treatment, including the following:
- Article I:1 of the GATS states that “Members shall apply the following general principles to all measures affecting trade in services: (a) Most-favored-nation treatment; (b) National treatment; and (c) Transparency.”
- Article II:1 of the GATS states that “With respect to any measure covered by this Agreement, each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers.”
- Article XVII:1 of the GATS states that “In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers in like circumstances.”
GATS National Treatment Commitments
Each WTO member has made a number of national treatment commitments in the GATS. These commitments are contained in each member’s Schedule of Specific Commitments. The commitments vary from member to member and from sector to sector.
Exceptions to National Treatment
The GATS allows for a number of exceptions to the national treatment principle. These exceptions are listed in Article XIV of the GATS. The most common exceptions are for national security, public morals, public order, public health, and the protection of human, animal or plant life or health.
Enforcement of National Treatment
The WTO Dispute Settlement Understanding (DSU) provides a mechanism for countries to enforce their national treatment rights. If a country believes that another country is not complying with its national treatment obligations, it can file a complaint with the WTO. The WTO Dispute Settlement Body will then appoint a panel to investigate the complaint. If the panel finds that the other country is not complying with its national treatment obligations, the other country will be required to take corrective action.
The Future of National Treatment
The principle of national treatment is likely to remain an important part of international trade law in the future. The WTO is currently negotiating a new round of trade negotiations, which is known as the Doha Round. The Doha Round includes a number of proposals on national treatment, including proposals to improve the transparency of national treatment measures and to strengthen the enforcement of national treatment rights.
Question 1
Which of the following is not a provision of the GATT on national treatment?
(A) No country shall, directly or indirectly, discriminate between its own and foreign goods in respect of all laws, regulations and requirements affecting their internal sale, purchase, transportation, distribution or use.
(B) No country shall, directly or indirectly, impose on imports any internal taxes or other charges of any kind in excess of those applied, directly or indirectly, to like domestic products.
(C) Products imported from any country shall not be subject, directly or indirectly, to taxes, charges or other exactions of any kind in excess of those applied, directly or indirectly, to like domestic products.
(D) Each Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its own like services and service suppliers.
Answer
(D) is the correct answer. The GATT is an agreement on trade in goods, not services.
Question 2
Which of the following is not an exception to the national treatment principle under the GATS?
(A) National security
(B) Public morals
(C) Public order
(D) Public health
(E) The protection of human, animal or plant life or health
Answer
(C) is the correct answer. Public order is not an exception to the national treatment principle under the GATS.
Question 3
The WTO Dispute Settlement Understanding (DSU) provides a mechanism for countries to enforce their national treatment rights. If a country believes that another country is not complying with its national treatment obligations, it can file a complaint with the WTO. The WTO Dispute Settlement Body will then appoint a panel to investigate the complaint. If the panel finds that the other country is not complying with its national treatment obligations, the other country will be required to take corrective action.
True or False?
Answer
True.
Question 4
The principle of national treatment is likely to remain an important part of international trade law in the future. The WTO is currently negotiating a new round of trade negotiations, which is known as the Doha Round. The Doha Round includes a number of proposals on national treatment, including proposals to improve the transparency of national treatment measures and to strengthen the enforcement of national treatment rights.
True or False?
Answer
True.