GATT/ WTO Essay Example

  • Category:
  • Document type:
  • Level:
  • Page:
  • Words:



Customer inserts his/her name

September 18, 2011

GATT which means the General Agreement on Tariffs and Trade
was a set of rules set by nations due to failure in creation of an international trade organization. GATT rules were modified in 1994 when it was replaced by WTO (World Trade Organization). By setting the new policies for trade, the new government member of WTO has contravened GATT principles and breached some articles but it has also set some relevant MTAs.

The introduction of quotas by the minister to limit the importation of cars, fridges and televisions will go along way in helping the local industry to compete in the export market. According to GATT, measures such as quotas that restrict quantities selectively encourage trade. The agreements by the WTO allow countries to introduce this system gradually, through the progressive liberalization. This is a relevant MTA.

Competition in exports is encouraged by the country payment of bounties to steel exporters. This is an incentive by the country to increase steel exports. This is a relevant MTA to the country’s trade. WTO agreement states that trading system set in any country should be more competitive.

ll other WTO members. However, some exceptions are allowed but the agreements only permit these exceptions under strict conditionsThe policy of imposing higher tariffs on clothing and footwear imported from European Union while the same items from other countries remain unchanged creates contravene GATT principles. According to WTO agreements, countries should not discriminate between their trading partners. The same treatment should be given to a

By the government imposing ant-dumping duties on canned tomatoes imported from Italy, it creates healthy competition from local tomatoes growers. However this act requires the government first to conduct the anti-dumping inquiry. According to WTO, it does not pass any judgment on a countries anti dumping policy, but it disciplines anti dumping actions. So the country will be breaching an article of GATT which states that “Anti dumping-Agreement” should be followed.

Making the tax base rate to be 10% for the local goods and the imported goods sold in the local markets to be 15% is healthy for the government as this raise revenue for it. This is relevant to MTA as charging customs duty on an import is not a violation of national treatment even if locally produced products are not charged an equivalent tax.

List of references

WTO (2011), UNDERSTANDING THE WTO: BASICS, Principles of the trading system. from