Contextual Infos

Question 1

GATT

Answer 1

General Agreement on Trade and Tariffs
-> later turned into WTO

Question 2

GATT/WTO values

Answer 2

• ## most favoured nation principle (MFN)

Question 3

MFN principle

Answer 3

• all members of the agreement have to be treated as equal trading partners
• conditions/tariffs have to be equivalent to those of the most favoured country

Question 4

Custom unions and free trade agreements

Answer 4

• violate MFN principle because they give preferential treatment to involved countries
• are an exception since they promote international trade

Question 5

principle of non-discrimination

Answer 5

national treatment principle and most favoured nation principle combined
- No country is unfairly favoured or punished.
- Foreign goods and firms compete fairly with domestic ones.
- Trade is governed by transparent, rules-based systems, not politics.
-> Promotes predictability and trust in global trade.
-> Reduces scope for protectionism.
-> Encourages countries to negotiate multilaterally rather than bilaterally.

Question 6

national treatment principle

Answer 6

Treat foreign goods and services the same as domestic ones after they’ve entered your market