What Is A Basic Principle Of The General Agreement On Tariffs And Trade

A system of generalized preferences has been put in place as a result of these commitments. Some states have adopted their own special preferences with one exception and, laterally, with a general exception to the obligation of the most favoured nation. Open markets can be beneficial, but they also require adjustments. WTO agreements allow countries to gradually introduce changes through gradual liberalization. Developing countries generally have more time to meet their obligations. The central principle of non-discrimination aims to prevent protectionist measures and guarantee trade freedom between all Member States. It aims to ensure a fair trading conditions. Removing trade barriers is one of the most obvious ways to promote trade. Barriers include tariffs (or tariffs) and measures such as import bans or quotas that selectively limit quantities. Other issues, such as bureaucracy and exchange rate policy, have also been discussed from time to time. The parties should strive to avoid subsidies for primary products, but they should not be applied in any way to obtain more than a fair share of world trade in the exports of this product. States no longer subsidize products that result in an export price below the domestic price.

At each round, each participating country proposes concessions that include a list of new customs commitments – one for each imported product. In order to achieve trade liberalization, customs obligations must be weaker than before. It is important to note, however, that there is no harmonization of customs obligations. At the end of a cycle, the signatory states do not have the same tariffs. The Uruguay Round, held from 1986 to 1993 and culminating in the creation of the World Trade Organization (WTO), also broadened the topics for discussion, including intellectual property. At the end of the Uruguay round, members signed the agreement on aspects of intellectual property rights that affect trade, commonly known as „TRIPS“. TRIPS has forced its members to harmonize some important elements of their patent, copyright and trademark laws.