WTO NTC Slides

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NTC clause National treatment clause

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WTO NTC Slides

Transcript of WTO NTC Slides

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NTC clauseNational treatment clauseNTCEvery multilateral agreement administered by the World Trade Organization (WTO) contains a national treatment (NT) clause which requiresmember countries to not discriminate between imported goods and like domestic goods with respect to their internal taxes and domestic regulations. For example, Article III of the WTO rules state that ....the products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations

Cases Example Europe vs US beef hormone case NTC & MFN issue ( MFN also called NTR)Remember WTOs 3 exmptions on MFN or NTC BLOCS, GSP, HOSTILE nations

Unfair trade practicesUNFAIR TRADE PRACTICES any act, policy or practice of a foreign government that (1) violates, is inconsistent with, or otherwise denies benefit to the nations under any trade agreement (2) is unjustifiable, unreasonable, or discriminatory, or (3) is inconsistent with a favorable section 301 of GATT (which is principles of trading agreement)

exampleDespite previous pledges, American companies continue to find it nearly impossible to purchase raw materials such as tin and zinc from China. Export tariffs and low quotas block access to the market, which gives Chinese enterprises an unfair advantage that violates clearly established WTO guidelines.

Unfair trade practice WTO DEFINESUnfair Trade Practice -- Unusual government support to firms, ranging from export subsidies to anti- competitive practices by the firms themselves, such as dumping, boycotts or discriminatory shipping arrangements, that result in competitive advantages in international trade for the benefitting firms. Hence ; On balance, competition becomes unfair when its effects on trade, consumers, and society as a whole are more detrimental than beneficial