GATT

exceptions of national treatment rule

discrimination in the: 1. procurement of goods by government agencies for governmental purposes only 2. payment of subsidies to domestic producers 3. screening of domestically produced cinematographic films 4. measures (national rules, decisions) as a matter of public policy - to protect certain essential public policy objectives

Protection only through tariffs

each member state may protect its domestic industries only through the use of tariffs

Article XI

forbids quotas and other quantitative restrictions that block the function of the price mechanism

Tariffs

governmental charges imposed on goods at the time they are imported into a state

Non-discrimination principle

international trade should be conducted without discrimination

GATT

is a set of rules under which the member states of that organization are committed to negotiate reductions in customs tariffs and other impediments to international trade in goods

The GATT 1947, Article III

member states are not allowed to charge duties (tariffs) in excess of those set out in the agreement, after the time the member state agreed to the WTO general agreement

MFN

suggests that the application of member states' tariffs are equal to all other members

National treatment rule

the treatment of imported products from other member states equally

Purpose of GATT

to relax government restrictions on international trade of goods

1. Direct Effect 2. Protection through tariffs 3. Non-discrimination

3 GATT principles

Direct Effect

A private person who may challenge the actions of a state (a party of GATT) invoking the rules of GATT

Most Favored Nation (MFN) and national treatment rules

Non-discrimination principle achieved by

General Agreement on Tariffs and Trade

GATT