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Nicolae-Horia ȚIȚ: Most Favored Nation Treatment (MFN) in trade in goods – fundamental rule of the WTO multilateral trading system

Abstract: The World Trade Organization (WTO) law provides for rules and disciplines on international trade in goods, based on the principles of non-discrimination. One of these principles is the MFN, according to which any commercial advantage, favour, privilege or immunity granted by any member to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other members (Art. I par. 1 GATT 1994).   A three – tier test of consistency is set out to determine whether there is a violation of the MFN treatment obligation under Art. I, par. 1 of GATT 1994: whether the measure at issue confers a trade “advantage” of the kind covered by the article; whether the products concerned are “like products”; whether the advantage at issue is granted “immediately and unconditionally” to all like products concerned. The article analyzes the three conditions and gives reference to the Panel and Appellate Body relevant reports, as well as the GATT Panels practice in the field. 

Key-words: most-favoured-nation treatment, trade in goods, advantages, like products.


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