Full Answer
What is the legal definition of national treatment?
DEFINITION of National Treatment. National treatment is a concept of international law that declares if a state provides certain rights and privileges to its own citizens, it also should provide equivalent rights and privileges to foreigners who are currently in the country.
What is the national treatment standard?
The national treatment standard is perhaps the single most important standard of treatment enshrined in international investment agreements. At the same time, it is perhaps the most difficult standard to achieve, as it touches upon economically (and politically) sensitive issues.
What is the “national treatment principle”?
As articulated in Article 3.1 of the TRIPS Agreement, the national treatment principle calls on WTO Members to accord no less favourable treatment to non-nationals than to nationals in the “protection” of trade-related intellectual property rights.
Is national treatment always desirable?
National treatment is generally considered to be desirable. However, it may not always be. In theory, the concept allows a state to effectively deprive foreigners of any rights or property of which that state also deprives its own citizens. For instance, suppose that a state has a law that allows it to expropriate property.
Which is an example of national treatment?
Alternatively, say the laws of a state hold that a married woman may not travel without the permission of her husband. Under the concept of national treatment, a foreign married woman traveling or living in that state would need her husband's permission to travel, even if she would not need it in her country of origin.
What is the national treatment principle?
National treatment is a principle that says countries should treat imported goods, services and intellectual property (trademarks, copyrights and patents) the same way they treat their own. This helps create a level playing field in the marketplace by preventing domestic goods from having an unfair advantage.
What is the importance of national treatment?
The national treatment rule prohibits countries from using domestic taxes and regulations to offset the value of tariff concessions and is, therefore, a significant tool in promoting trade liberalization. National treatment provisions, as well as the MFN clause, are often invoked in WTO disputes.
What is NT in WTO?
National treatment is a basic principle of GATT/WTO that prohibits discrimination between imported and domestically produced goods with respect to internal taxation or other government regulation.
What are exceptions of national treatment?
Exceptions peculiar to national treatment include the exception on screen quotas of cinematographic films under Article III:10 and Article IV. The provi- sions of GATT Article XX on general exceptions, Article XXI on security ex- ceptions, and WTO Article IX on waivers also apply to the national treatment rule.
How do you generally differentiate NT and MFN treatment?
Like most investment treaties, the national treatment provision directs a comparison of domestic and foreign investors/investments and whether there has been less favourable treatment of foreign investors/investments by the host state; the MFN treatment provision reflects the same structure as between foreign states.
What is national treatment according to Berne Convention?
There are two basic elements of protection under the Berne Convention: first, “national treatment,” according to which works originating in one of the member States must be protected in each of the member States in the same way that such States protect the works of their own nationals; second, minimum rights, which ...
What are the differences between the national treatment obligation of GATT and the national treatment obligation in GATS?
It is wider in scope because, while national treatment under GATT is concerned with measures affecting products per se, the domain of this obligation in the GATS includes not only measures affecting services products, but also measures affecting service suppliers.
What is the difference between free trade and fair trade?
Free trade emphasizes the need for less borders, restrictions, and tariffs on goods and services passing through countries and continents. Meanwhile, fair trade involves ensuring that the workers behind these goods and services are treated fairly and that human rights are maintained throughout the supply chain.
What is the national treatment clause with respect to aliens?
1 The principle of granting national treatment to aliens has made its appearance in international law through host States claiming that foreign individuals within their territorial jurisdiction should have the same and equal legal status to that granted to their own nationals.
What is national treatment?
National treatment is a principle in international law. Utilized in many treaty regimes involving trade and intellectual property, it requires equal treatment of foreigners and locals. Under national treatment, a state that grants particular rights, benefits or privileges to its own citizens must also grant those advantages to the citizens ...
What is national treatment obligation?
A good summary is found in Japan-Alcohol which states; " [a] national treatment obligation is a general prohibition on the use of internal taxes and other internal regulatory measures so as to afford protection to domestic production".
What is the conflict between national treatment and minimum standards?
The conflict between national treatment and minimum standards has mainly played out between industrialized and developing nations, in the context of expropriations. Many developing nations, having the power to take control over the property of their own citizens, wished to exercise it over the property of aliens as well.
Is customs duty a violation of national treatment?
Therefore, charging customs duty on an import is not a violation of national treatment even if locally-produced products are not charged an equivalent tax. There is evidence that the national treatment principle is not being upheld, at least as far as intellectual property is concerned.
Should imported goods be treated equally?
Imported and locally produced goods should be treated equally — at least after the foreign goods have entered the market. While this is generally viewed as a desirable principle, in custom it conversely means that a state can deprive foreigners of anything of which it deprives its own citizens.
What is national treatment?
National treatment can be defined as a principle whereby a host country extends to foreign investors treatment that is at least as favourable as the treatment that it accords to national investors in like circumstances.
Why is national treatment important?
The national treatment standard is perhaps the single most important standard of treatment enshrined in international investment agreements. At the same time, it is perhaps the most difficult standard to achieve, as it touches upon economically (and politically) sensitive issues.
What is national treatment obligation?
The national treatment obligation in the General Agreement on Trade in Services (GATS) is wider in scope but more limited in application than that in the General Agreement on Tariffs and Trade (GATT). It is wider in scope because, while national treatment under GATT is concerned with measures affecting products per se, ...
What is prohibitive scope of national treatment?
Under the prohibitive scope of national treatment even those provisions are covered which do not explicitly have affects but indirectly effect. [iii] Thus having a interpretation in the true sense of the term, not merely restricted to verbal but interpretive in spirit.
What is the test of consistency with the national treatment obligation of Article XVII:1 of the GATS?
The test of consistency with the national treatment obligation of Article XVII:1 of the GATS is whether the foreign services or service suppliers are granted treatment no less favourable. Paragraphs 2 and 3 of Article XVII clarify the requirement of ‘treatment no less favourable’ set out in paragraph 1 by stating:
How many countries are covered by the WTO?
The scope and extent of the reach of WTO national treatment policy is over all the members of WTO i.e. 146 Countries it covers all the government of these policies , it covers not only taxes but also laws, regulations which affect the sale , distribution , of imported goods and services .
What is Identical Treatment?
Identical treatment, modifies the conditions of competition in favour of the domestic services or service suppliers.
Is the internal tax imposed on imported products inconsistent with the national treatment obligation?
conclusion that the internal tax imposed on imported products is inconsistent with the national treatment obligation, under Article III:2, second sentence, the tax differential has to be more than de minimis to support a conclusion that the internal tax imposed on imported products is WTO-inconsistent.
Is national treatment under GATT wider?
It is wider in scope because, while national treatment under GATT is concerned with measures affecting products per se, the domain of this obligation in the GATS includes not only measures affecting services products, but also measures affecting service suppliers.
What is the most favoured nation and national treatment?
The most favoured nation and national treatment are the cornerstones of the GATT/WTO and the various other treaties. Both the principle states that a WTO member should not discriminate the other WTO member in respect of goods and services. These two principles used only at an international level. Through these two principles, all ...
What is the WTO?
WTO is an international organisation in the world that deal with trade regulation among the nations. WTO established in 1995 under the Marrakesh Agreement. It administers the trade agreement negotiated by its member, in GATT, GATS, and TRIPs. The conclusion of the Uruguay round of GATT negotiated leads to the formation of WTO.
What is the purpose of GATT?
GATT is a multilateral agreement between the various countries which has a purpose to promote international trade between countries, reduce tariffs, and other trade barriers.
Is customs duty a violation of national treatment?
National treatment only applies once a product, service or item of intellectual property has entered the market. Therefore, charging customs duty on an import is not a violation of national treatment even if locally-produced products are not charged an equivalent tax.
Is national treatment part of the WTO?
Both principles are used only at the international level. National treatment is an integral part of the various agreement deal with WTO. National treatment along with the most favoured nation is one of the cornerstones of the WTO trade law. The WTO integrates GATT principles and provides a more robust structural basis for their application ...