Final answer:
The basic principles of GATT/WTO trade law include Most Favored Nation (MFN), National Treatment, Reciprocity, Transparency, and binding and enforceable commitments. These principles are designed to ensure non-discriminatory and fair trade between all member nations while providing a structure for the enforcement of these rules through dispute resolution mechanisms.
Step-by-step explanation:
The student has asked for a list and brief explanation of the basic principles of GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization) trade law. Here are four key principles:
- Most Favored Nation (MFN): One of the most important principles under GATT/WTO, requiring that any advantage, favor, duty, or formalities given to one member must be applied to all WTO members. This ensures non-discriminatory trade between all member countries.
- National Treatment: After goods have entered a market, they should be treated no less favorably than domestically produced goods with respect to all laws, regulations, and requirements affecting their internal sale, offering, purchase, transportation, distribution, or use.
- Reciprocity: This principle implies that any concession or privilege granted by one country to another should be met with an equivalent or compensating concession in favor of the first country. It helps maintain a balance in trade benefits.
- Transparency: Members are required to publish their trade regulations, to maintain institutions allowing for the review of administrative decisions affecting trade, and to respond to requests for information by other members.
- Binding and enforceable commitments: Each member country’s commitments under GATT/WTO treaties are legally binding and can be enforced through the organization’s dispute settlement process.
The GATT was founded in 1947 and superseded by the WTO in 1995. The WTO now includes about 150 nations and is the primary international body governing global trade rules, including tariffs, quotas, and non-tariff barriers, as well as implementing dispute resolution mechanisms.