Gatt Article : National Treatment Article 3 Essay

710 WordsMay 3, 20163 Pages
GATT Article III- National treatment Article 3 The next measure to be analysed is the legislative amendment. Prior to beginning the analysis the first fact to establish is whether Article III applies. Generally Article III applies to internal measures and the legislative amendment is an internal measure. Furthermore Article 3(4) specifically applies to the amendment as it is not a tax or charge but affects offering for sale by increasing the cost of production. Having established that Article 3(4) of GATT applies examination of the amendment begins. GATT Article 3(4) and the AB in Korea Beef outline that for a measure to be a violation of Article 3(4) three things must be established: the products at issue must be like, the law at issue must be an internal measure affecting internal sale or offering for sale… and finally the imported product must be given less favourable treatment compared to like domestic products. To determine likeness under Article 3(4): examining the physical properties, tariff classification, end uses and interchangeability of the products is important . In this case the products at issue are Newland’s rear-engine cars and Richland’s front engine cars. In assessing their likeness their physical properties are same except for the fact that one engine is in the rear while the other is in front. The end uses of both cars are also similar as they serve a common purpose of locomotion. The two cars are also interchangeable as the Richland survey shows
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