NATIONAL TREATMENT PRINCIPLE: GATT ARTILE III

(Abstract)

INTERNATIONAL TRADE LAW

SUBMITTED BY:

ABHIKALPA GHOSH
B.B.A. LL.B. (A), BUSINESS LAW HONS.
ROLL NO. 1682002
 ABSTRACT

National treatment (GATT Article III) stands alongside MFN treatment as one of the central
principles of the WTO Agreement. Under the national treatment rule, Members must not accord
discriminatory treatment between imports and “like” domestic products(with the exception of the
imposition of tariffs, which is a border measure. The GATS and the TRIPS Agreement have similar
provisions. This rule prevents countries from taking discriminatory measures on imports and from
off- setting the effects of tariffs through non-tariff measures. The purpose of the national treatment
rule is to eliminate “hidden” domestic barriers to trade by WTO Members by according imported
products treatment no less favourable than that accorded to products of national origin.
Adherence to this principle is important in order to maintain a balance of rights and obligations,
and is essential for the maintenance of the multilateral trading system. National treatment is the
simple and ingenious solution to solve the problem of worldwide protection for creative
inventors and authors. According to the principle of territoriality, countries can grant protection
only within the boundaries of their own territory. Worldwide protection can be provided only by
international treaties having as members the greatest possible number of countries. But when
concluding such treaties, the nature and scope of protection accorded to nationals of other
member states was an issue that still had to be solved.