Which basic rules of WTO law and policy constitute the foundation of the multilateral trading system

3 MAIN GROUPS OF RULES REGARDING MARKET ACCESS

1. Tariffs
2. Rules on quantitative restrictions
3. Rules on non-tariff barriers

WHERE IS IT ROOTED?

2 Principles of Non-Discrimination in WTO Law

1. Most-favored nation (MFN) treatment obligation

2. National treatment obligation

TARIFF — is a tax imposed by one country on the goods and services imported from another country

CUSTOMS DUTIES

- Under WTO law the impositions of customs duties on trade in goods is not prohibited, but WTO
calls upon countries to execute tariff concessions

TARIFF CONCESSIONS (ARTICLE II: 1 GATT 1994)

- The result of negotiations between countries as regards to the mutual beneficial reduction of
custom duties
- To ensure transparency of legal rights and obligations, the nature of any duties or charges levied
on bound tariff items  it shall be recorded in the Member’s Schedule of Concessions

SCHEDULE OF CONCESSIONS

- The date as of which duties or charges are bound shall be in 15 April 1994
o Recorded at the levels applying on this date
- For subsequent renegotiation of a concession or negotiation of a new concession  date of the
tariff item — date of the incorporation of the new concession in the appropriate Schedule

WHERE A TARIFF ITEM HAS PREVIOUSLY BEEN THE SUBJECT OF A CONCESSION

- The level of duties or charges recorded in the appropriate Schedule shall NOT be higher than the
level obtaining at the time of the first incorporation of the concession in that Schedule

SUMMARY

- All trade concessions made by Members must be stated and incorporated into the legal
agreement — “bound” rates
o No other Member may be treated less favorably than any “bound” rate

QUANTITATIVE RESTRICTIONS — are explicit limits, or quotas, on the quantity of a good that can be
imported or exported during a specified time period

RULE ON QUANTITATIVE RESTRICTIONS

- As a general rule, quantitative restrictions on trade in goods are forbidden

 1. Goods
o WTO Members are not allowed to ban the importation or exportation of goods or to
subject them to quotas (Article XI: 1 GATT 1994)
2. Services
o A Member who has undertaken market-access commitments with respect to a specific
sector may not maintain or adopt quantitative restriction in that sector, UNLESS
otherwise specified in its schedule (Article XVI: 2 GATS)

NON-TARIFF BARIERS — are trade barriers that restrict the import and/or export of goods, other than
tariffs

TYPES OF NON-TARIFF BARRIERS

1. Protectionist barriers
2. Assistive policies
3. Non-protectionist policies

EXAMPLES OF NON-TARIFF BARRIERS

1. Licenses
2. Quotas
3. Embargoes
4. Import deposit

RULES ON NON-TARIFF BARRIERS

1. GATT 1994
a. Article VIII GATT 1994: Fees & Formalities Connected with Importation & Exportation
i. Summary: These should be a fair reflection of cost and not be used as a means of
protection
2. WTO Agreements
a. Agreement on Sanitary and Phytosanitary Measures (SPS Agreement)
i. A kind of non-protectionist policy based on scientific principles
b. Agreement on Technical Barriers to Trade (TBT Agreement)
i. A kind of non-protectionist policy that aims to ensure that technical regulations,
standards, and conformity assessment procedures are non-discriminatory and
do not create unnecessary obstacles to trade. While at the same time, protects
human health and safety

PRINCIPLES OF TRANSPARENCY AND JUSTICIABILITY

1. Transparency — obligation of Members to publish all trade laws, regulations and judicial
decisions
2. Justiciability — obligation of Members to maintain or institute judicial, arbitral or administrative
tribunals