- Most Favored Nation Treatment (MFN) principle:
The League of Nations introduced a concise model text on the Most Favored Nation (MFN) principle in 1933, comprising approximately 300 words. However, the global economic crisis of 1929-1933 hindered widespread adoption of this principle. The onset of World War II nearly obliterated the MFN concept entirely. In the post-war era, however, the principle experienced a robust resurgence. This revival coincided with the evolution of the multilateral trading system, particularly the establishment of the General Agreement on Tariffs and Trade (GATT) in 1947.Evidently, the MFN principle emerged as a cornerstone of international commerce, solidifying its position as a fundamental tenet in global trade relations.
This principle is understood to be based on a trade commitment, in which a granting State will grant its beneficiary State the most favorable treatment that it currently offers or will offer in the future to any third State.
- Principle of National Treatment (NT):
Along with MFN, the NT principle is mentioned in many bilateral and multilateral trade agreements. This principle is intended to ensure that foreign products and the suppliers of those products are treated in the domestic market no less favorably than domestic products or the suppliers of those products. . This means that the importing country cannot treat foreign products, services, or suppliers differently in terms of domestic taxes and fees or under competitive conditions.
Before GATT 1947, no multilateral treaty had provisions on NT. After being included in Article III of GATT 1947, NT became a common principle in bilateral and multilateral trade agreements.
This regulation demonstrates fair treatment between imported goods and domestic goods, creating conditions for healthy competition between these types of goods.
- Principles of Market Access:
Market access is a cornerstone of GATT/WTO efforts to liberalize and expand global trade. Member countries are legally bound to open their markets for goods (under GATT) and subsequently, services and foreign investment (under WTO). This commitment is formalized through negotiated roadmaps. Prospective WTO members must present their own market access plans as a condition of joining, while existing members refine these plans through ongoing negotiation rounds.
- Fair Trade principles:
This principle helps maintain fairness in commercial competition. Fair competition is the backbone of international trade. To ensure fair competition, GATT/WTO rules prohibit practices that distort competition, such as export subsidies and dumping goods. These actions can artificially lower prices, harming domestic industries. Additionally, non-tariff barriers, like complex regulations and standards, can create obstacles to trade. GATT introduced measures to address these issues and promote fair competition among nations
- Transparency principles:
Transparency is an important principle of the WTO to ensure favorable conditions for international commercial liberalization. According to this principle, member countries must promptly announce measures that relate to or affect international commerce, and are obliged to promptly notify new laws, adoptions, amendments, and decisions. judicial, administrative decisions, and administrative directives that relate to or affect international commerce to the agencies supervising the implementation of WTO multilateral trade agreements, which are obliged to promptly provide information on the above measures when requested by other Member States.
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– Trần Quang Huy –