GATT PRINCIPLES

• Origins of the GATT : why GATT?
• GATT principles
• GATT mechanisms
• From GATT to WTO - negotiating "rounds"
• GATT principles in action : examples
• Beyond the Uruguay Round
• Conclusion : why WTO?

GATT : ORIGINS

• After World War 2 : wish to avoid another depression; belief that open markets best way to increase prosperity
• Havana Charter much broader based, but never implemented.
• General Agreement on Tariffs and Trade
• Gatt = Goods - Gatt disciplines relate to trade in goods.

NON-DISCRIMINATION

• MOST FAVOURED NATION PRINCIPLE (MFN) - GATT ARTICLE
• "With respect to customs duties and charges of any kind… any advantage …granted … to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for … the territories 01 all other contracting parties" - GIVE TO ONE, GIVE TO ALL.

NON-DISCRIMINATION

• NATIONAL TREATMENT GATT ARTICLE III
• "The products of … any contracting party imported into the territory of any other contracting party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products."

PROTECTION ONLY BY TARIFFS

• GATT ARTICLE XI requires elimination of quantitative restrictions
• "No prohibitions or restrictions other than duties, taxes or other charges, whether… quotas, import or export licences or other measures… shall be instituted… on the importation of any product… or export of any product [to any other contracting party]"…

TRANSPARENCY

• GATT ARTICLE X
• Very broad requirement to publish not only international agreements, laws and regulations but also administrative rulings that affect products.
• Must be done "promptly in such a manner as to enable governments and traders to become acquainted with them."
• Must be administered fairly

EXCEPTIONS

• GATT ARTCLE XX allows exceptions to Gatt obligations on several grounds, e.g.
  • public morality ;
  • human animal or plant life or health
• but measures must not be arbitrary or unjustified discrimination or a disguised restriction on trade.

SAFEGUARDS GATT MECHANISMS DISPUTE SETTLEMENT NEGOTIATING ROUNDS URUGUAY ROUND