International Business Law

Rules of non-discrimination (most-favoured-nation treatment)

It requires a WTO Member that grants a certain favourable treatment to any given country to grant that same favourable treatment to all other WTO Members.

Rules of non-discrimination (the national treatment agreement)

It requires a WTO member to treat foreign products, services and supplies NO less favourably than it treats domestic products, services and suppliers.

Rules on market access (customs duties/ tariffs)

Under WTO, customs duties is not prohibited, but WTO members must negotiate mutually beneficial reductions of customs duties. This results in tariff concessions and bindings.

Rules on market access (quantitive restrictions)

WTO members are not allowed to ban the importation or exportation of goods or subject them to quotas (unless there are specific circumstances)

Rules on unfair trade

WTO does not provide general rules on unfair trade practices, but it has rules that relate to specific forms of ‘unfair’ trade.

Dumping is condemned but not prohibited, unless it causes material injury to the domestic industry of a member producing a ‘like’ product.

Export and import subsidies are prohibited, and other subsidies are prohibited if they cause adverse effects to the interests of other members.

Rules on the balance between trade liberalisation and other societal values and interests

Exceptions allow WTO members to deviate from basic WTO rules in order to take account of economic and non-economic values and interests that compete or conflict with free trade.