The 4 Most Important Fundamentals of the GATT are listed below:
1. Most Favoured Nation Status:
A GATT Member must extend to all other contracting parties of the GATT the most favourable treatment with respect to tariffs and related matters granted to any trading partner. This non-discriminatory treatment ensures that any tariff reduction or other trade concession is automatically extended to all GATT parties. The GATT allows some exceptions, primarily for customs unions such as the EU, free trade areas such as that established by the U.S. – Canada Free Trade Agreement, and Tokyo Round code commitments such as those on anti-dumping, subsidies and government procurement.
2. National Treatment:
GATT members must give imported goods the treatment equal to that accorded to domestic goods in domestic markets. No restrictions on charges, such as taxes, may be applied to imported products unless they are applied equally to comparable domestic products.
3. Protection through Tariff:
ADVERTISEMENTS:
The GATT generally prohibits quantitative restrictions or quotas. Instead, contracting parties are expected to provide protection by means of tariffs which are transparent and subject to negotiation in the GATT.
4. Dispute Settlement:
Parties may challenge trade actions of other parties that may be inconsistent with the GATT. GATT members decide whether to accept by consensus the resulting findings of a panel of trade experts. The new procedures resulting from the Uruguay Round negotiations will provide more automatic and effective resolution of disputes.