Derecho Parcial 1 Flashcards
(10 cards)
What is the Most-Favored Nation (MFN) principle under Article I of GATT?
It ensures like products from all WTO members receive equal treatment in trade, preventing discrimination between trading partners.
What are the three conditions to prove an MFN violation under Article I?
The products must be ‘like’.
One WTO member must receive an advantage, favor, or privilege.
That advantage was not extended immediately and unconditionally to all WTO members.
Can private trade associations or unions impose tariffs under GATT/WTO rules?
No, only governments or authorized entities can impose trade measures that fall under WTO jurisdiction.
What does Article III of GATT (National Treatment) regulate?
It prohibits discrimination between imported and domestic products in internal measures like taxes and regulations.
What are the two types of internal measures under Article III?
Fiscal measures – Internal taxes and charges.
Non-fiscal measures – Regulations affecting the sale, distribution, or use of products.
What is the Binding Overhang in WTO tariffs?
It is the difference between a country’s bound tariff rate and the applied MFN tariff rate.
Can a country impose tariffs higher than its bound tariff rate?
No, under WTO commitments, a country cannot exceed its bound tariff rate unless it renegotiates its commitments.
If a country imposes a higher tariff on imports from one WTO member but not another, which rule is violated?
The MFN principle (Article I), because like products must be treated equally among all WTO members.
If an internal tax applies only to imports and not domestic goods, what article of GATT does it violate?
Article III (National Treatment), because it discriminates against imported products.
Can a country justify trade restrictions that seem to violate GATT principles?
Yes, under Article XX, if the restriction is for reasons like public health, environmental protection, or national security.
