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The Legal and Economic Principles of World Trade Law: National Treatment

Author

Listed:
  • Grossman, Gene M.

    (Princeton University)

  • Horn, Henrik

    (Research Institute of Industrial Economics (IFN))

  • Mavroidis, Petros C.

    (Columbia Law School and University of Neuchatel)

Abstract

The purpose of the study is to propose interpretations of the National Treatment (NT) provision included in Art. III GATT, unbound by case-law interpretations of this provision. To make such proposals, we need to understand the role of the provision in the agreement. To this end, we first examine in Chapter 2 the negotiating record relevant to the rationale for the enactment of this provision, as well as the manner in which case law has understood it. In the same Chapter, we also discuss the role of NT in the General Agreement on Tariffs and Trade (GATT) from the perspective of economic theory. Having established the purpose of NT, we discuss in Chapter 3 the manner in which this provision has been implemented in case law: that is, here we focus on the understanding of the key terms implementing the purpose of NT by GATT and World Trade Organization (WTO) adjudicating bodies. At the end of this Chapter we provide a critical assessment of the case law. In light of our dissatisfaction with the case-law interpretations of some key terms, we present in Chapter 4 our preferred interpretation of NT.

Suggested Citation

  • Grossman, Gene M. & Horn, Henrik & Mavroidis, Petros C., 2012. "The Legal and Economic Principles of World Trade Law: National Treatment," Working Paper Series 917, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0917
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    References listed on IDEAS

    as
    1. Horn, Henrik & Mavroidis, Petros C., 2008. "The Permissible Reach of National Environmental Policies," Working Paper Series 739, Research Institute of Industrial Economics, revised 20 Jun 2008.
    2. Henrik Horn & Giovanni Maggi & Robert W. Staiger, 2010. "Trade Agreements as Endogenously Incomplete Contracts," American Economic Review, American Economic Association, vol. 100(1), pages 394-419, March.
    3. Henrik Horn, 2006. "National Treatment in the GATT," American Economic Review, American Economic Association, vol. 96(1), pages 394-404, March.
    4. Horn, Henrik, 2009. "The Burden of Proof in National Treatment Disputes and the Environment," Working Paper Series 791, Research Institute of Industrial Economics.
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    More about this item

    Keywords

    National treatment; Trade agreement; WTO; GATT; Most favoured nation;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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