The GATT 1994 is an international treaty that replaced the 1947 GATT and is binding on all WTO members, aiming to further liberalize trade in goods. It resulted from the Uruguay Round and incorporates the 1947 GATT by reference while also expanding and updating it. The GATT 1994 acts as an important source of international trade law, covering issues like MFN treatment, tariff reduction, non-tariff barriers, dispute settlement, and transparency.
The GATT 1994 is an international treaty that replaced the 1947 GATT and is binding on all WTO members, aiming to further liberalize trade in goods. It resulted from the Uruguay Round and incorporates the 1947 GATT by reference while also expanding and updating it. The GATT 1994 acts as an important source of international trade law, covering issues like MFN treatment, tariff reduction, non-tariff barriers, dispute settlement, and transparency.
The GATT 1994 is an international treaty that replaced the 1947 GATT and is binding on all WTO members, aiming to further liberalize trade in goods. It resulted from the Uruguay Round and incorporates the 1947 GATT by reference while also expanding and updating it. The GATT 1994 acts as an important source of international trade law, covering issues like MFN treatment, tariff reduction, non-tariff barriers, dispute settlement, and transparency.
The GATT 1994 is an international treaty that replaced the 1947 GATT and is binding on all WTO members, aiming to further liberalize trade in goods. It resulted from the Uruguay Round and incorporates the 1947 GATT by reference while also expanding and updating it. The GATT 1994 acts as an important source of international trade law, covering issues like MFN treatment, tariff reduction, non-tariff barriers, dispute settlement, and transparency.
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THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) OF 1994: AN
IMPORTANT SOURCE INTERNATIONAL TRADE LAW REPLACED THE 1947 GATT
The GATT 1994 is one of the multilateral agreements annexed to the WTO Agreement. It is an international treaty binding upon all WTO Members. The GATT 1994 is only concerned with trade in goods. It aims at further liberalizing trade in goods through the reduction of tariffs and other trade barriers and eliminating discrimination. (Friedman, 2018).
GATT 1994 resulted from the Uruguay Round of trade negotiations and represents a comprehensive update and expansion of the original GATT established in 1947. (Raj Bhala, 2012). Paragraph 1 of the introductory text of the GATT 1994 states: The General Agreements on Tariffs and Trade 1994 (GATT) shall consist of 1) the provisions in the General Agreements on Tariffs and Trade, dated October 30, 1947. This means GATT 1994 is a continuation of the 1947 GATT. (UNCTAD, 2016) However, it is important to note that the GATT 1947 is, in fact, no longer in force. It was terminated in 1996. However, as explained, its provisions have been incorporated by reference in the GATT 1994. (G. Abuseridze 2015, p. 19)
Today, GATT 1994 acts as an important source of international trade law. It covers a wide range of trade-related matters, including (to mention but few): -
i. Most-Favored-Nation (MFN) Principle: Article I of GATT 1994 enshrines the MFN
principle, requiring each member to extend to all other members the same favorable treatment given to any third country. This provision ensures non-discriminatory trade practices among members, promoting fairness and predictability in international trade relations. ii. Tariff Reduction: GATT 1994 includes provisions for the reduction of tariffs through negotiated agreements known as tariff schedules. Article II outlines the general principles for negotiating tariffs, including the principle of reciprocity, which requires concessions made by one member to be reciprocated by others. iii. Non-Tariff Barriers: Article XI addresses non-tariff barriers to trade, such as quotas and import licensing requirements, by prohibiting quantitative restrictions on imports or exports except in specified circumstances. Article XX contains exceptions to the prohibition on quantitative restrictions, allowing members to impose measures necessary to protect human, animal, or plant life or health, or to conserve exhaustible natural resources, among other reasons. iv. Dispute Settlement: GATT 1994 provides for the settlement of disputes among members through a dispute settlement mechanism. Article XXIII establishes procedures for the settlement of disputes, including consultations between parties, the establishment of dispute settlement panels, and the possibility of appeal to the Appellate Body. v. Transparency and Notification: Article X requires members to provide transparency in their trade policies and measures by notifying the WTO of changes in their trade regulations and practices. This provision promotes transparency and predictability in international trade relations, allowing members to monitor each other’s compliance with GATT 1994 obligations.
Other issues covered in the GATT 1994 include, national treatment on internal taxation and regulation (Article III); anti-dumping and countervailing duties (Article VI); customs fees and formalities (Article VIII); the publication and administration on trade regulations (Article X); restrictions to safeguard the balanced of payment (Article XII); exchange arrangements (Article XV); Subsidies (Article XVI); State trading enterprises (Article XVII); governmental assistance to economic development (Article XVIII); safeguard measures (Article XIX); general exceptions (Article XX); Security exceptions (Article XXI). (Provisions of the GATT 1994).
Therefore; these specific provisions of GATT 1994 serve as important sources of international trade law, providing the legal framework for promoting open, fair, and predictable international trade relations among WTO members. They establish rights and obligations for member states, facilitate the negotiation of trade agreements, and provide mechanisms for resolving disputes that may arise in the implementation or application of trade rules.
